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Scilla [17]
3 years ago
9

A 15 year, $1,000 par value bond has an 8% semi-annual payment coupon. The bond currently sells for $925. if the yield to maturi

ty remains at it's current rate, what will the price be 5 years from now?
Business
1 answer:
Monica [59]3 years ago
7 0

Answer:

Explanation:

First, find the YTM of the bond using the following inputs on a financial calculator;

N = 15*2 = 30 semiannual payments

PV= -925

Semiannual coupon payment; PMT = (8%/2)*1000 = 40

FV = 1,000

then CPT I/Y = 4.458%

Annual rate = 4.458% *2 = 8.92%

Next, use the YTM above and change the time to maturity to (15-5 )= 10 years or 20 semiannuals. Therefore, the price at year 5 will be as follows;

N = 10*2 = 20

Semiannual coupon payment; PMT  = 40

FV = 1,000

Semiannual rate; I/Y = 4.458%

then CPT PV = 940.206

The price at year 5 will be $940.21

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GuDViN [60]
C: software

in most countries, there are four primary types of intellectual property (IP) that can be legally protected: patents, trademarks, copyrights, and trade secrets.

Copyrights do not protect ideas, but rather the manner in which ideas are expressed (“original works of authorship”) - written works, art, music, architectural drawings, or even programming code for software
5 0
2 years ago
A homebuilder negotiates a deal with a farmer to give the farmer a percentage of the profit on homes the homebuilder builds and
Tcecarenko [31]

Answer:

C. Yes, because the farmer is making a percentage of the profit

Explanation:

If the farmer is being used as sales man and is making a 50% profit on the home he sells, then this means he is an employee and to do his job the right way he needs to have a real estate licence for that.

Hope this Helps.

Goodluck.

4 0
3 years ago
Read 2 more answers
South Carolina is facing budget cuts. The number of employees needs to be reduced over the next three years at all state agencie
choli [55]

<u>Answer:</u> This approach is called attrition.

<u>Explanation:</u>

Attrition is the process of reducing the workforce of the company due to various reasons. Here South Carolina has lot of budget constraints which forces the state to reduce the in take of new employees. This approach can also be called as hiring freeze so that the payroll can be reduced instead of doing layoffs.

The strength of the state is reduced in order to reduce the expenses and money pay outs. When there is a deficiency in the budgets actions have to be taken accordingly to minimize the effects.

8 0
3 years ago
An asset (not an automobile) put in service in June 2019 has a depreciable basis of $1,035,000, a recovery period of 5 years, an
Irina18 [472]

Answer:

The maximum deduction is $207,000.

Explanation:

As per MACRS depreciation table 5 years half year conversion depreciation rate for first year is 20% - 100%/5 = 20%

The maximum deduction is $1,035,000 * 20% = $207,000

7 0
3 years ago
You want to invest $20,000 today to accumulate $32,000 for graduate school. If you can invest at an interest rate of 10% compoun
uranmaximum [27]

Answer:

N = 5 years

Explanation:

At first we have to calculate the number of periods to determine at which part of the table we should look at.

Given,

PV = $20,000

FV = $32,000

Interest rate, i = 0.10 (10%)

Number of periods, n = ?

We know, Future value, FV = PV × (1+i)^{n}

or, $32,000 = $20,000 × (1 + 0.10)^{n}

or, 1.6 = 1.10^{n}

As the factor is 1.6, we will look at the following image which is the FV factor table to find the number of periods.

We can find it in a different way too.

log 1.6 = n log 1.10

or, n = \frac{log 1.6}{log 1.10}

or, n = 4.93 years

Therefore, n = 5 years

8 0
3 years ago
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