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
ycow [4]
3 years ago
13

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua

l coupon payments. Suppose a German company issues a bond with a par value of €1,000, 15 years to maturity, and a coupon rate of 7.3 percent paid annually.If the yield to maturity is 8.6 percent, what is the current price of the bond? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Current price �
Business
1 answer:
ohaa [14]3 years ago
5 0

Answer:

892.69

Explanation:

Given the following :

Par value of bond (FV) = 1000

Period (n) = 15 years

Coupon rate (r) = 7.3% annually

Yield to maturity (r) = 8.6% = 0.086

The coupon price = 7.3% of par value

Coupon price (C) = 0.073 * 1000 = 73

Current price of bond can be computed using the relation:

= C * [1 - 1 / (1 + r)^n] / r + (FV / (1 + r)^n)

73 * [1 - 1/(1+0.086)^15]/0.086 + 1000/(1 + 0.086)^15

73*(1 - 1/3.44704)/0.086 + (1000/(1.086)^15)

= 73*8.2546131 + 290.10326

= 602.5867563 + 290.10326

= 892.69

You might be interested in
Which categories of goods used by ordinary people are most affected by scarcity? Use examples from two of these categories and e
Diano4ka-milaya [45]

Answer:

nondurable and consumer goods

Explanation:

Nondurable goods are affected by scarcity because their time life is limited. For example, if the capital goods required for its transportation or conservation of ice cream broke down, the product would ruin very easily.

Consumer goods are generally mass consumed. For example clothes are consumed by most of us during the year, but most of them are imported nowadays. Any trade barrier that delayed their supply would cause a rapid shortage.  

7 0
3 years ago
Unlike a product advertisement, an institutional advertisement may have __________ as an objective? select one:
OverLord2011 [107]
Institutional or corporate advertising may have a. reminding as an objective. A product advertisement is centered around selling a product. On the other hand, an institutional ad's goal isn't to sell a product, but to raise awareness of the brand, strengthen customer loyalty, remind the customers that the brand is there with all of its meaning and story behind it, even if they don't need their product right now (if they do need it, all the better). It is a strategy of exposure. When I see a compelling Nike corporate ad, I probably won't rush to the nearest store and buy their product if I don't need it right away. But as soon as I start needing a pair of sneakers, I will recall the Nike ad.
5 0
3 years ago
There is a positive association between the number of drownings and ice cream sales. this is an example of an association likely
Delicious77 [7]
The correct answer is not among all the choices. The answer is "common response." This<span> is an example of an association likely caused by common response. </span>Thank you for posting your question. I hope this answer helped you. Let me know if you need more help. 
7 0
2 years ago
"Phillips and Sanchez is a retailer that operates a national chain of home furnishings stores. It has designed a website and a s
Annette [7]

Answer:

Omnichannel strategy

Explanation:

Omnichannel strategy -

It is the strategy adapted by an organisation in order to enhance the experience of the user .

It is a cross - channel content strategy .

The resources of these , Omnichannel strategy , are are orchestrated  and designed to cooperate .

This approach or strategy is used in many industries , like ,telecommunications ,  retail , government , healthcare and financial services .

Hence , the example given in the question , is of  a Omnichannel strategy .

7 0
3 years ago
Great Britain, Denmark, and Sweden have stayed out of the euro zone because of the Multiple Choice dollar peg advocated by some
solong [7]

Answer:

implied loss of national sovereignty to the European Central Bank

Explanation:

Unlike France, that has adopted the Euro as its currency, Great Britain, Denmark and Sweden have all decided to stay out of the Euro zone. This is because accepting the Euro as their currency will mean that the European Central Bank, through the Euro, has power over their economies as a result of exchange.

Also, staying away from the Euro zone means that the European central bank doesn't have control of  their monies among other things.

Cheers

6 0
3 years ago
Other questions:
  • Milton Friedman argues that businesses:
    8·1 answer
  • 3. According to the National Automobile Dealers Association, a single dealership may employ people with as many as 57 different
    9·1 answer
  • Diana Mark is the president of ServicePro, Inc., a company that provides temporary employees for not-for-profit companies. Servi
    10·1 answer
  • Supplies on hand at October 31 total $500. Expired insurance for the month is $100. Depreciation for the month is $50. Services
    6·1 answer
  • Inventory Control and Planning Neilsen Cookie Company sells its assorted butter cookies in containers that have a net content of
    9·1 answer
  • Restricting imports Question 10 options: can protect United States jobs in the protected industry, which increases economic welf
    13·2 answers
  • Que son los creditos
    5·1 answer
  • 1. Assume that nominal GDP for 2012 was $700B with a price index of 110 (using 2004 as the base year). What is the real GDP for
    7·1 answer
  • Your monthly paycheck after deductions is $4352.
    12·1 answer
  • Van Hookie, Inc. issued bonds with a maturity amount of $200,000 and a maturity ten years from the date of issue. If the bonds w
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!