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Rina8888 [55]
3 years ago
11

Yan Yan Corp. has a $3,000 par value bond outstanding with a coupon rate of 5.2 percent paid semiannually and 25 years to maturi

ty. The yield to maturity on this bond is 4.8 percent. What is the price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Business
1 answer:
Talja [164]3 years ago
4 0

Answer:

$3,173.63

Explanation:

For computing the price of the bond we need to apply the present value i.e to be shown in the attachment

Given that,  

Future value = $3,000

Rate of interest = 4.8% ÷ 2 = 2.4%

NPER = 25 years × 2 = 50 years

PMT = $3,000 × 5.2% ÷ 2  = $78

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the price of the bond is $3,713.63

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The u.s. treasury, the federal reserve banks, commercial banks, and thrift institutions excluded According to the question, the "federal reserve system" is the organisation in charge of controlling the nation's money supply.

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2 years ago
Keith Monroe nails hundreds of pieces of culled lumber in the blazing July sun to form a parquet deck for his barn roof. He and
Neporo4naja [7]

Answer:

The correct answer is C

Explanation:

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The execution phase is the phase which has long time duration and it develop or create the team of project for the product or service and then present the final or finished product to the customer.

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3 years ago
Select the TWO True statements about the Selection of Distribution Channels:
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3 years ago
Traxx is a newly emerging shoe manufacturing company. After extensive market research, Traxx divides its market into professiona
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7 0
4 years ago
An investment will pay $150 at the end of each of the next 3 years, $100 at the end of Year 4, $400 at the end of Year 5, and $4
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Answer:

Present Value= $978.83

Explanation:

Giving the following information:

An investment will pay $150 at the end of each of the next 3 years, $100 at the end of Year 4, $400 at the end of Year 5, and $450 at the end of Year 6.

i= 0.09

We need to use the following formula:

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3 0
3 years ago
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