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Nadusha1986 [10]
3 years ago
7

An investor purchases a 15-year, $1,000 par value bond that pays semiannual interest of $50. If the semiannual market rate of in

terest is 6%, what is the current market value of the bond
Business
1 answer:
bearhunter [10]3 years ago
5 0

Answer:

The answer is $862.35

Explanation:

Explanation:

This is a semiannual paying coupon, meaning interest are paid twice in year.

N(Number of periods) = 30periods ( 15 years x 2)

I/Y(Yield to maturity) = 6 percent

PV(present value or market price) = ?

PMT( coupon payment) = $50

FV( Future value or par value) = $1,000.

We are using a Financial calculator for this.

N= 30; I/Y = 6; PMT = 50; FV= $1,000; CPT PV= -862.35

Therefore, the market price of the bond is $862.35.

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The MR = MC rule Multiple Choice applies both to pure monopoly and pure competition. applies only to pure competition. applies o
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The MR = MC rule C. applies only to pure monopoly.

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3 0
1 year ago
Chuck has $2,500 invested in a bank that pays 4% annually. The length of time it will take for his funds to double is closest to
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Answer:

The answer is 17.67 years.

Explanation:

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Future value of the money to be double of the present value. This means the future value will be $5,000($2,500 x 2)

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Number of years or periods to reach this $5,000 is unknown. So we are looking for this.

To compute this number of periods, lets use Financial calculator.

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7 0
3 years ago
A winning formula for many Answer E: Luxury brands is craftsmanship, heritage, authenticity, and history, often critical to just
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Correct question:

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Answer:

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3 years ago
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