Given the current yield to maturity of the bond, the price of the bond five years for now is $883.10.
<h3>What is the price of the bond five years from now?</h3>
The first step is to determine the yield to maturity of the bond. The yield to maturity is the return on the bond if the bond is held to matuity.
Yield to matuity can be determined using a financial calculator:
Cash flow in year 0 = -875
Cash flow each year from year 1 to 25 = 85
Cash flow in year 25 = $1000
Yield to matuity = 9.86%
Future price of the bond: (coupon x future price factor) + [FV / (1 + YTM)^n)]
Future price factor = [1 - (1/YTM)^n] / YTM
= [1 - 1/0.0986^20] 0.0986 = 8.595555
[85 x 8.595555 ] + 152.478323 = $883.10
To learn more about yield to maturity, please check: brainly.com/question/26484024
Answer:
Median = 27.5 Mean = 28.25
Step-by-step explanation:
The answer is B because its 9 hundred and thousandths is the smallest place
Answer: 5/8
Step-by-step explanation:
Answer:
Step-by-step explanation:
Are you in Calculus? These are calculus concepts!
To calculate the rate of change here you must specify an interval, e. g., "what is the rate of change on the interval (0, 3)?"
If you know calculus: The 'rate of change' on the interval (a, b) is
f(b) - f(a)
r. of c. = --------------------
b - a
Have you used this formula before?
Because of the 'x^2' term this is NOT a linear function.
If you want more explanation, provide an interval on which you want the average rate of change and ask specific questions of your own.
