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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

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Answer:

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Explanation:

given data

rent = $1000

time = 12 month

to find out

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cash method  = 1000 × 12

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6 0
3 years ago
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7 0
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LenKa [72]

Answer:

Option (B) is correct.

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Your objective is to determine that nonrecurring purchases, initiated by various user organizations, have been properly authoriz
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3 0
3 years ago
The Magic Flute Company paid cash dividends totaling $ 310,000 in 2016 and $ 190,000 in 2017. In​ 2018, the company will pay cas
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Answer:

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