Answer:
Current Bond price = $1155.5116
Step-by-step explanation:
We are given;
Face value; F = $1,000
Coupon payment;C = (7.3% x 1,000)/2 = 36.5 (divided by 2 because of semi annual payments)
Yield to maturity(YTM); r = 5.6%/2 = 2.8% = 0.028 (divided by 2 because of semi annual payments)
Time period;n = 13 x 2 = 26 years (multiplied by 2 because of semi annual payments)
Formula for bond price is;
Bond price = [C × [((1 + r)ⁿ - 1)/(r(r + 1)ⁿ)] + [F/(1 + r)ⁿ]
Plugging in the relevant values, we have;
Bond price = [36.5 × [((1 + 0.028)^(26) - 1)/(0.028(0.028 + 1)^(26))] + [1000/(1 + 0.028)^(26)]
Bond price = (36.5 × 18.2954) + (487.7295)
Bond price = $1155.5116
I am going to have to go with, C, because the other answers are Invalid.
Answer:
[See Below]
Step-by-step explanation:
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- Rearrange the equation by subtracting what is to the right of the greater than sign (≤, ≥) from both sides of the inequality:
- Divide both sides by
:
- Remember to flip the inequality sign:
- Subtract
from both sides:
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^-^
Answer:
P(king or diamond) = P(king) + P(diamond) - P(king and diamond) P(king or diamond) = (4/52) + (13/52) - (1/52) P(king or diamond) = 16/52 Page 5 P(king or diamond) = 4/13.
