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VARVARA [1.3K]
3 years ago
8

A 10 year 7% municipal bond, quoted on a 5.00 basis, is priced at 104. A 10 year 6% municipal bond, quoted on a 5.00 basis, is p

riced at 101. What is the price of a 10 year, 6.40% municipal bond, quoted on a 5.00 basis?
A. 101.25
B. 101.80
C. 102.05
D. 102.20
Business
1 answer:
goldfiish [28.3K]3 years ago
3 0

Answer:

D. 102.2

Explanation:

Using a simultaneous equation

Since the year is constant

We will use the the basis and municipal bond as our variables

So equation 1 = 7x+5y=104

Eqn ii= 6x + 5y= 101

Using eliminating method

X=3

Substitute for x in equation 1 to get the value of y

7(3) + 5y=104

5y=104-21

Y=16.6

To get the price for the percent of 6.40 at 5% basis substitute for the value of X and Y respectively in the both equation

6.4x+5y=?

6.4(3) + 5(16.6)=

19.2+83=102.2

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Answer:

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Giving the following formula:

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<u></u>

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Answer:

Difficult entry, Mutual interdependence, Market is control by a few large firms.

Explanation:

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Answer:

The correct answer is:

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Explanation:

The required table is not given in the question. Please find below the attachment of the table.

Given:

Future value,

= $30,000

If discounting rate is 9%, the present value will be:

= Future \ value\times PV \ factor(9 \ percent, 8 \ years)

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