Answer:
Ans. Price of the bond is $9,250.57
Explanation:
Hi, first we need to establish the semi-annual coupon of the bond and the semi-annual discount rate (YTM semi-annually)
Coupon=10000*(4.9%/2)= $245
To turn the annaul YTM to semi-annual, we have to use the following equation
![YTM(semi-annual)=(1+YTM)^{\frac{1}{2} } -1](https://tex.z-dn.net/?f=YTM%28semi-annual%29%3D%281%2BYTM%29%5E%7B%5Cfrac%7B1%7D%7B2%7D%20%7D%20-1)
![YTM(semi-annual)=(1+0.056)^{\frac{1}{2} } -1=0.0276](https://tex.z-dn.net/?f=YTM%28semi-annual%29%3D%281%2B0.056%29%5E%7B%5Cfrac%7B1%7D%7B2%7D%20%7D%20-1%3D0.0276)
After all this, we are ready to find the price, here is the math of this.
![Price=\frac{245((1+0.0276)^{39}-1) }{0.0276(1+0.0276)^{39} } +\frac{(245+10000)}{(1+0.0276)^{40} } =9250.57](https://tex.z-dn.net/?f=Price%3D%5Cfrac%7B245%28%281%2B0.0276%29%5E%7B39%7D-1%29%20%7D%7B0.0276%281%2B0.0276%29%5E%7B39%7D%20%7D%20%2B%5Cfrac%7B%28245%2B10000%29%7D%7B%281%2B0.0276%29%5E%7B40%7D%20%7D%20%3D9250.57)
Best of luck.
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Learn more:
brainly.com/question/17408105
Answer:
Price discrimination
Explanation:
Price discrimination is charging customers differently for the same product.
Price discrimination is a type of selling strategy where customers are charged for same goods and services. The seller charges based on what they think that the user is likely to pay.
Answer and Explanation:
The identification is as follows:
As we know that
M! money supply involved all the currecies that have physical existance i.e. notes, coins, demand deposits etc
While on the other hand, M2 involves M1 + near money i.e. mutual funds, checking deposits, money market etc
Since Susan has 2 year CD so it would be classified as a M2 money supply
Since larry withdraw from the bank so it would be included in M1 and M2
And, since raphael has $25,000 in money market so would be classified as a M2 money supply
Answer: Im not doing the math but Option 2 is the better option
Explanation: