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serious [3.7K]
3 years ago
6

Your firm offers a 10-year, zero coupon bond (i.e., coupon rate is 0%). The yield to maturity is 8.8 percent. What is the curren

t market price of a $1,000 face value bond?
Business
1 answer:
Kamila [148]3 years ago
6 0

Answer:

The correct answer to the following question is $430.241

Explanation:

Zero coupon bond which are also know as pure discount bond, are those bonds which are issued at discount and makes no periodic interest payments to the bearer.

Given information -

Face value at maturity - $1000

Yield to maturity - 8.8%

Number of years till maturity - $10

Current market price - maturity value / (1+ i) ^n

where i = yield to maturity, n = Number of years till maturity

= $1000 / (1+8.8%)^10

= $1000 / (1.088)^10

= $1000 / 2.32428

= $ 430.2407

= $430.241 ( approximately )

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In witch part of a professional email should you try to be brief, but highly descriptive?
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8 0
3 years ago
Ruth runs a bread store. Her store's supply is highly elastic. What will Ruth do when the price of bread falls?
I am Lyosha [343]

Answer:

D

Explanation:

If there is more bread for a low price more people will come.

I did this before.

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5 0
2 years ago
A U.S. firm holds an asset in Great Britain and faces the following scenario: State 1 State 2 State 3 Probability 25% 50% 25% Sp
Korvikt [17]

Answer:

The answer is letter B.

Explanation:

The mean is 2.03 =($2.5+ $2 + $1.6)/ 3 ; [0.25(2.5-2.03)²] + [0.5(2-2.03)²] + [0.25(1.6- 2.03)²] = 0.055225+0.00045 + 0.046225= 0.1019

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7 0
3 years ago
Beth is the assistant store manager at a trendy clothing store. The store hires lots of seasonal employees. Beth has little rega
KonstantinChe [14]

Answer:

The correct answer will be "Theory X".

Explanation:

  • Through Theory X, alternatives to administration may range across a hard methodology to another soft one. The hard or challenging framework is focused on intimidation, overt threats, small compared oversight as well as tighter restrictions, which are control or perhaps management system.
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So you might well characterize Beth's leadership approach as Theory X as being a graduate of motivation factors.

5 0
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