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Strike441 [17]
3 years ago
7

You bought a bond 8 years ago for​ $1,000. It has a​ $1,200 face value and a nominal annual bond rate of​ 10%, paid semiannually

​ (so it pays​ 5% of the face value every 6​ months). You'd like to sell it now and get a nominal annual yield of​ 18%. How much should you sell the bond​ for?

Business
1 answer:
Llana [10]3 years ago
7 0

Answer:

The correct answer is $1990.10.

Explanation:

According to the scenario, the given data are as follows:

Present value = $1,000

Time period = 8 years

Time period (Nper) ( semiannual) = 16

Bond rate semiannual = 5%

So, Semiannual Payment (pmt) = $1,200 × 5% = $60

Annual yield = 18%

So, Semiannual yield ( rate ) = 9%

So, by putting all this in financial calculator, we get the following result.

Attachment is attached below.

The future value is $1,990.10.

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Based on the limited amount of information provided, what would you guess is the social style of the buyer? how about the social
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8 0
2 years ago
A local pet supplies boutique had a good year with rising revenues and reduced operating costs resulting in personal income for
Delvig [45]

Answer:

C. discretionary income

Explanation:

3 0
3 years ago
The discount rate is the interest rate charged by:_______.
disa [49]

Answer:

B

Explanation:

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5 0
3 years ago
Forsyth County charges a 7% sales tax. If you bought a new printer form $3250.00, what is the total cost for the printer?
iren2701 [21]

Answer:

Total cost = $3477.5

Explanation:

Given the following data;

Sales tax = 7%

Cost price = $3250.00

To find the total cost for the printer;

First of all, we would determine the sales tax

Sales tax = 7/100 * 3250

Sales tax = 7 * 32.5

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Now, we can find the total cost;

Total cost = sales tax + cost price

Total cost = 227.5 + 3250

Total cost = $3477.5

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3 years ago
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