1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ser-zykov [4K]
3 years ago
11

offers a 6.3 percent bond with a current market price of $767.50. The yield to maturity is 8.49 percent. The face value is $1,00

0. Interest is paid semiannually. How many years is it until this bond matures
Business
2 answers:
musickatia [10]3 years ago
7 0

Answer:

9.25 years

Explanation:

Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Price of the bond is calculated by following formula:

According to given data

Assuming the Face value of the bond is $1,000

Coupon payment = C = $1,000 x 6.3 = $63 annually = $31.5 semiannually

Current Yield = r = 8.49% / 2  = 4.245% semiannually

Market value = $767.50

Market Value of the Bond = $31.5 x [ ( 1 - ( 1 + 4.425% )^-n ) / 4.425% ] + [ $1,000 / ( 1 + 4.425% )^n ]

Market Value of the Bond = $31.5 x [ ( 1 - ( 1 + 4.425% )^-n ) / 4.425% ] + [ $1,000 / ( 1 + 4.425% )^n ]

n = 18.53 / 2

n = 9.25 years

Bad White [126]3 years ago
5 0

Answer:

27.85years

Explanation:

Nper = ? (indicates the period)

PV = 767.50 (indicates the price)

FV = 1000 (indicates the face value)

Rate = 8.49%/2 (indicates semi-annual YTM)

PMT = 1000 x 6.30% x 1/2 = 31.50 (indicates the amount of interest payment)

Period = Nper(Rate,PMT,PV,FV)/2 = Nper(8.49%/2,31.50,-767.50,1000)/2 = 27.85 Years

You might be interested in
Beau borrows $15,000 from credit center to buy a car. The lender assigns the right to receive the loan payments to debt collecti
alexandr1967 [171]

Beau gets a $15,000 loan from a credit union to buy an automobile. Debt  receives the assignment from the lender of the authority to accept loan payments. Beau can be sued by the assignee if he refuses to pay the loan.

A payment is the voluntarily made exchange of money, its equivalent, or other valuables by one party (such as an individual or business) for a loan another's goods, services, or to satisfy a legal obligation. Payer refers to the party sending the money, whereas payee denotes the recipient of the payment.

In principle, the payee is free to choose the payment method he or she will take; nevertheless, most payments regulations often compel the payer to accept the nation's legal cash up to a specified maximum. Except loan otherwise otherwise agreed by the parties, payments are typically made in the payee's native currency.

Learn more about payments here

brainly.com/question/15138283

#SPJ4

5 0
1 year ago
Which career is best suited for people who have a high school diploma?
yuradex [85]

Answer:a

Explanation:

4 0
3 years ago
Read 2 more answers
Sheffield Corp. took a physical inventory on December 31 and determined that goods costing $165,000 were on hand. Not included i
Marina86 [1]

Answer: $272,570

Explanation:

4 0
3 years ago
your food-services company has been named as the sole provider of meals at a small university. the cost and demand schedules are
DiKsa [7]

Answer:

The answer is "400 meals at 2.50 dollars a day".

Explanation:

Please find the complete question and the solution in the attachment file.

In this question, when we compare the MR value as well as the MC, the monopolist produces up to the point where MR>MC.

In this, it happens before 400 meals at 2.50 per day and, so "400 meal at 2.50 dollars a day".

8 0
2 years ago
Economic bads are items
sdas [7]
Economic bads for which the desired quantity is less than what nature provides at a zero price.<span>
Those are items people would pay to avoid or get rid of. They are</span><span> the opposite of an </span>economic<span> good</span><span>
Examples of economic bads include: pollution, noise, unhealthy food, risk, losss of resources,...</span>
7 0
3 years ago
Other questions:
  • According to the rule of 72, if the GDP of the Apex Federation is growing at 1.7% per year, its economy will double in approxima
    6·1 answer
  • Use the relationship between an initial change in spending and the final change in real GDP to answer these questions about the
    6·1 answer
  • In his speech on the need to expand the local animal shelter, sheldon quotes the center's director as stating, "if we do not sec
    6·1 answer
  • In Bovania, cattle compose 48 percent of the consumer price index (CPI), housing composes 32 percent, and entertainment accounts
    11·1 answer
  • Suppose that the world price of resins is $100 per ton. Now suppose that the United States imposes a 10% tariff on imported resi
    11·1 answer
  • A test-validation strategy performed by demonstrating that the items, questions, or problems posed by a test are a representativ
    8·1 answer
  • g Bob is a wheat farmer, but also likes to give fiddle lessons. One spring day, Bob faces a choice: spend ten hours planting whe
    13·1 answer
  • Which employees should be aware of how to turn off power to a shop in an emergency?
    13·1 answer
  • Hi guys, i need urgently some help with this question
    8·1 answer
  • Omar is setting up his company in quickbooks and selects the accrual basis of accounting. how will his business record income an
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!