Given the current yield to maturity of the bond, the price of the bond five years for now is $883.10.
<h3>What is the price of the bond five years from now?</h3>
The first step is to determine the yield to maturity of the bond. The yield to maturity is the return on the bond if the bond is held to matuity.
Yield to matuity can be determined using a financial calculator:
Cash flow in year 0 = -875
Cash flow each year from year 1 to 25 = 85
Cash flow in year 25 = $1000
Yield to matuity = 9.86%
Future price of the bond: (coupon x future price factor) + [FV / (1 + YTM)^n)]
Future price factor = [1 - (1/YTM)^n] / YTM
= [1 - 1/0.0986^20] 0.0986 = 8.595555
[85 x 8.595555 ] + 152.478323 = $883.10
To learn more about yield to maturity, please check: brainly.com/question/26484024
Answer:
98.
Step-by-step explanation:
You have to do it in order so you can get the correct answer. Do the problem in the parenthesis first. 6 ÷ 3 = 2.
It should look like this:
7² x 2.
Then, do your exponents. 7² is just basically 7 x 7. It equals 49.
Now, it should look like this:
49 x 2. Multiply 49 x 2, and your answer should be 98.
Answer:
$101.85
Step-by-step explanation:
Think of the two days as separate equations. They are added together to get a sum of the pay she will receive after the two days.
Equation
(4.5*10.5) + (5.2*10.5) = x (This just represents the unknown value)
Solve Through
(47.25) + (54.60) = x
47.25 + 54.60 = x
101.85 = x
Amanda will get paid $101.85 For her 2 days of work.
Answer: 10/36
Step-by-step explanation:
Answer:
5.6
Step-by-step explanation:because if you divide correctly it will equal 5.6
