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jeka94
3 years ago
6

A bond with a $1,000 face value and an 8 percent annual coupon pays interest semiannually. The bond will mature in 15 years. The

yield to maturity is 11 percent. The price of the bond should be: Do no round intermediate computations. Round the final answer to two decimal places.
Business
1 answer:
Keith_Richards [23]3 years ago
7 0

Answer:

$781.99

Explanation:

The price of the bond can be computed using excel pv function given below:

=-pv(rate,nper,pmt,fv)

rate is the semiannual yield to maturity i.e11%*6/12=5.5%

nper is the number of semiannual coupons the bond would i.e 30 semiannual coupons in 15 years

pmt is the amount of semiannual coupon=$1000*8%*6/12=$40

fv is the face value of $1000

=-pv(5.5%,30,40,1000)=$781.99  

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Answer:

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Explanation:

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7 0
3 years ago
The direct materials budget is prepared using information from the ________ budget.
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Explanation:

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4 years ago
The more​ ________ used, the greater the leverage a company employs on behalf of its owners.
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The more​ debt used, the greater the leverage a company employs on behalf of its owners.

<h3>What is financial leverage?</h3>

Financial leverage exists as the usage of borrowed money (debt) to finance the purchase of assets with the anticipation that the income or capital gain from the new asset will surpass the cost of borrowing.

<h3>What is financial leverage example?</h3>

An example of financial leverage use contains utilizing debt to buy a house, borrowing money from the bank to begin a store, and bonds issued by companies.

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To learn more about financial leverage refer to:

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2 years ago
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Use of foreign labor

Explanation:

A p E x Verified

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3 years ago
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