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ozzi
3 years ago
11

Suppose a U.S. Treasury bond will pay $2,500 five years from now. If the prevailing interest rate on 5-year Treasury bonds is 4.

25%, compounded semiannually, the value of the bond today is closest to:
Business
1 answer:
Morgarella [4.7K]3 years ago
5 0

Answer:

The value of the bond today is closest to $1648.85

Explanation:

The value of the bond today is closest to:

Present Value = FV / (1+i)^n *m

FV= 2500

I = 4.25 = 0.0425

N= 5

M= 2

The value of the bond today = 2500 / (1+0.0425) ^5*2

The value of the bond today = 2500 / 1.516214468

The value of the bond today = 1648.853256

The value of the bond today = $1648.85

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Answer:

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40% of the asset's value = $29,200

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B) salvage value = asset's value - total depreciation = $73,000 - $65,700 = $7,300

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3 years ago
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3 years ago
The economic analysis of minimum wage involves both normative and positive analysis. Consider the following consequences of a mi
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<u>Explanation:</u>

First, remember that the difference between <em>normative and positive economic analysis</em> is that;

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<u> Thus, a </u><u>Normative analysis</u><u> of the consequence of minimum​ wage would be the following statements:</u>

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4 0
3 years ago
Privately owned businesses are common in which type of economy?
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4 0
3 years ago
Read 2 more answers
Joe wants to be able to purchase a dream car on January 1,2004, just after he graduates from college. Joe has had a part time jo
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Answer:

FV= $46,031.45

Explanation:

Giving the following information:

Monthly deposit= $450

Number of months= 59

Interest rate= 0.21/12= 0.0175

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FV= {A*[(1+i)^n-1]}/i

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FV= {450*[(1.0175^59) - 1]} / 0.0175 + 450

FV= $46,031.45

5 0
3 years ago
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