<span>The process of earning your income is called earning a living. It may be because we need different things to live a comfortable life. For these, we need a income first. So by earning income, we are indirectly earning a (comfortable) living.</span>
The correct answer would have to be true :)
Question 7
The equation of a straight line AB is

(a) Find the gradient of line AB.
(b) Find the y-intercept of line AB.
(c) A second line PQ is parallel to the line AB and passes through a point (2, -8).
Show that the second line PQ also passes through the point(-1,-5)
Answer:
Case A $581,757.17
Case B $500,000.00
Case C $416,910.21
Explanation:
Current price of a bond
The market price of a bond can be computed using the pv formula in excel, which is given as :
=pv(rate,nper,pmt,fv)
Where rate is the yield to maturity on the bond divided by 2 since the bond in question is semi-annual interest paying bond i.e
Case A 4%/2=2%
Case B 6%/2=3%
Case C 8.5%/2=4.25%
The nper is the time to maturity of the bond multiplied by 2 for the same reason cited for yield to maturity i.e 10 years *2=20
The pmt is the semi-annual coupon interest payable by the bond i.e 6%/2*$500,000=$15,000
The fv is the future value of the bond given as $500,000
Case A
=-pv(2%,20,15000,500000)
Pv= 581,757.17
Case B
=-pv(3%,20,15000,500000)
PV=$$500,000.00
Case C
=-pv(4.25%,20,15000,500000)
PV=$416,910.21
