Answer:
$885.65
Explanation:
Missing word <em>"You are considering the purchase of a $1,000 par value bond with an 6.5% coupon rate (with interest paid semiannually) that matures in 12 years. If the bond is priced to provide a required return of 8%, what is the bond’s current price?"</em>
<em />
Rate = 8% / 2
Nper = 12 * 2 = 24
Pmt = 1,000 * 6.5% / 2 = 32.5
FV = 1,000
Bond's current price = PV(rate, nper, pmt, fv)
Bond's current price = PV(8%/2, 24. 32.5, 1000)
Bond's current price = $885.65
So, the bond's current price is $885.65
It’s a bank that offers services to the general public and to companies.
Answer:
A credit score is usually a three-digit number that lenders use to help them decide whether you get a mortgage, a credit card or some other line of credit, and the interest rate you are charged for this credit. The score is a picture of you as a credit risk to the lender at the time of your application.
Explanation:
The present value of a dollar would be calculated as -
1 dollar X Present value factor of $ 1 @ 5 % for three years.
Present value factor of $ 1 @ 5 % for three years = 0.8638
Present value of $ 1 after 3 years = $ 1 X 0.8638 = $ 0.8638
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