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artcher [175]
3 years ago
6

g Your grandfather purchased a $1,000 face-value bond 10 years ago. When he purchased the bond, it had 30 years to maturity and

a coupon rate of 5% paid annually. Now you want to sell the bond and read that the yield on similar bonds is 4.93%. What can you sell the bond for today
Business
1 answer:
natulia [17]3 years ago
3 0

Answer:

You can sell the bond for $1,008.78 today

Explanation:

We need to calculate current value of the bond & its coupon

Face value: $1,000

Left tenor: 20 years (= 30 years to maturity - 10 years ago)

Coupon rate: 5%

Yield to maturity: 4.93%

Total coupon to be paid every year= $1,000* 5%  = $50

To calculate the current value of coupon received in every of 20 years, we use formula PV in excel or manually as below:

PV = 50/(1+4.93%)^20 + 50/(1+4.93%)^19+.... +50/(1+4.93%)^1 = $626.83

The current value of face value after 20 years = $1,000/(1+4.93%)^20 = $381.95

So the value of bond = $626.83 + $381.95 = $1,008.78

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A. i think , hoped this helped
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4 years ago
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Suppose that in Country A, a small open economy, there is a positive shock to the propensity of consumers to save: for the same
bagirrra123 [75]

Answer:

The Current Account Balance of Country A will improve

Explanation:

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This is reflected clearly in statement 1, this is because with the same real rate of interest the balance will increase, of current accounts and as a result it will improve.

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3 years ago
Sumner sold equipment that it uses in its business for $30,800. Sumner bought the equipment a few years ago for $79,600.00 and h
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Answer: $9025 §1231 loss

Explanation:

From the question, we are informed that Sumner sold equipment that it uses in its business for $30,800 and that the equipment was bought a few years ago for $79,600.00 and has claimed $39,775 of depreciation expense.

Assuming this is Sumner's only disposition for the year, the amount and type or character of Sumner's gain or loss goes thus:

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Since the equipment is sold for $30,800, the loss will be:

= $39825 - $30800

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4 years ago
In the case of an external cost, marginal private cost?
skad [1K]

Private costs and external costs are separated by economists. Private expenses are those incurred by the company manufacturing the item. Someone not connected to the transaction is responsible for external expenses. The contrast between private and external advantages is the same.

<h3>What do you mean by private costs?</h3>

Any expense that an individual or business incurs to purchase or create products and services is referred to as a private cost.

This covers the price of labor, supplies, equipment, and everything else that an individual or business pays for.

Any adverse impacts or injury brought on as a result of the production are not included in the private cost.

Driving a car has several personal expenditures, including gasoline and oil, maintenance, depreciation, and even the amount of time the driver spends behind the wheel.

Private expenses must be considered when making decisions about production and consumption since they are paid for by the company or the customer.

To learn more about  private cost, refer to the following link:

brainly.com/question/24188698

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Seasonal data is a discriminant variable exhibiting a repeating patterns at regular intervals over time. group of answer choices
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Seasonal data is a discriminant variable that displays recurring patterns throughout time at set intervals. What is false discriminant analysis?

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How do variables fit into discriminant analysis?

The researcher employs a method known as discriminant analysis to evaluate the study data when the criteria, or the dependent variable, is categorical and the predictor, or the independent variable, is of an interval type.

What several types of discriminant analysis exist?

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