1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zavuch27 [327]
3 years ago
5

The current​ zero-coupon yield curve for​ risk-free bonds is as​ follows: Maturity ​(years) 1 2 3 4 5 YTM 5.05 % 5.49 % 5.78 % 5

.93 % 6.09 % What is the price per $ 100 face value of a​ four-year, zero-coupon,​ risk-free bond?
Business
1 answer:
kondor19780726 [428]3 years ago
7 0

Answer:

The answer is $79.42

Explanation:

Zero-coupon bonds does not make any periodic payments of interest. It pays both the interest and the face value at maturity.

N(Number of periods) = 4 years

I/Y(Yield to maturity) = 5.93 percent

PV(present value or market price) = ?

PMT( coupon payment) = 0

FV( Future value or par value) = $100

We are using a Financial calculator for this.

N= 4; I/Y = 5.93; PMT = 0; FV= $100; CPT PV= -79.42

Therefore, the market price of the bond is $79.42

You might be interested in
Can somebody help me find a pattern in these numbers?
Papessa [141]
1 and 5 would be the numbers
3 0
3 years ago
Good Firm is highly profitable and will grow rapidly in the future. Bad Firm faces the same risks but barely makes a profit and
RideAnS [48]

Answer: B.both stocks are equally good investments

Explanation:

The options are;

A.it is better to buy shares in Bad Firm

B.both stocks are equally good investments

C.it is better to buy shares in Good Firm

D.both stock prices react equally to the same information

From the question, we are informed that Good Firm is highly profitable and will grow rapidly in the future while Bad Firm faces the same risks but barely makes a profit and will not grow at all. It should be noted that In an efficient market, both stocks are equally good investments.

3 0
3 years ago
In the language of macroeconomics, investment refers to Select one: a. saving. b. the purchase of new capital. c. the purchase o
N76 [4]

Answer:

The correct answer is letter "B": the purchase of new capital.

Explanation:

In macroeconomics, an investment is a capital that has been acquired with the intention that it will produce income or interest over time. Popular investments include <em>stocks, bonds, real estate, mutual funds </em>and<em>, </em>to a lesser degree<em>, commodities, annuities, and options. </em>

Many investments trade on the open market every day. Global events and company results will cause the price of the investment to rise or fall.

4 0
3 years ago
A community college might grant all of the following degress except
klio [65]
I would say a technical program certificate, i hope i helped, have an amazing day :)
3 0
3 years ago
Read 2 more answers
Explain the importance of contracts when analyzing revenue arrangements.
Nana76 [90]
<span>Contracts are legally binding documents that have the ability to protect and allow all parties to be clear and precise of actions and expectations within the agreement, including payment arrangements. Contracts are important when analyzing revenue arrangements, as it ensures that all parties are aware of the agreed upon outcome and provide hard evidence should there be any future disputes.</span>
5 0
3 years ago
Other questions:
  • After some troubling times in Egypt, American tourists are visiting in record numbers. As a result, demand for Egyptian pounds w
    6·2 answers
  • A favorable cost variance occurs when actual costs are more than standard costs standard costs are more than actual costs standa
    10·1 answer
  • Louis is a student at Texas A&amp;M who just secured a summer internship working for the marketing department of Southwest Airli
    10·2 answers
  • Ace Leasing acquires equipment and leases it to customers under long-term sales-type leases. Ace earns interest under these arra
    12·1 answer
  • Police agency positions in victim advocacy and statistical analysis are examples of ______ personnel.
    10·1 answer
  • Monsters Incorporated (MI) in ready to launch a new product. Depending upon the success of this product, MI will have a value of
    11·1 answer
  • Is the national interest a reliable source
    10·1 answer
  • Theory of production​
    7·1 answer
  • Investing in stocks and bonds is risky because it is possible to lose all or part of your principal.
    8·1 answer
  • hans purchased a new passenger automobile on august 17, 2022, for $30,000. during the year, the car was used 40% for business an
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!