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NeX [460]
3 years ago
7

A Microgates Industries bond has a 10 percent coupon rate and a $1,000 face value. Interest is paid semiannually, and the bond h

as 20 years to maturity. If investors require a 12 percent yield, what is the bond’s value? * a. $849.45 b. $879.60 c. $985.18 d. $963.15 e. None of the above
Mathematics
1 answer:
Usimov [2.4K]3 years ago
8 0

Answer:

a. $849.45

Step-by-step explanation:

In the above question, we are given the following information

Coupon rate = 10%

Face value = 1000

Maturity = n = 20 years

t = number of periods = compounded semi annually = 2

Percent yield = 12% = 0.12

Bond Value formula =

C/t × ([1 -( 1/ 1 + r/t)-^nt ÷] r/t) +( F/ (1 + r/t)^nt)

C = coupon rate × face value = 10% × 1000 = 100

Bond value:

= 100/2 × ( [1 - (1 /1 + 0.12/2)^-20×2]÷ 0.12/2)+ (1000/( 1 + 0.12/2)^20×2

= 50 × ( [1 - (1 /1 + 0.06) ^40] ÷ 0.06) + ( 1000/ (1 + 0.06) ^40

= 50 × ( [1 - (1/ (1.06) ^40] ÷ 0.06 ) + (1000/(1.06)^40)

= 50 × 15.046296872 + 97.222187709

= $849.45

Bond value = $849.45

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sasho [114]

Answer:

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Step-by-step explanation:

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So, in Δ CSD  SD is the longest side as SD = Hypotenuse.

Now, an altitude CF is drawn to hypotenuse SD.

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6 0
3 years ago
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Radda [10]

Answer:

Step-by-step explanation:

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2 years ago
9.
Hitman42 [59]

the answer is 4.5 ft

Step-by-step explanation:

Step-by-step explanation:

Given that the two fugures in the question above are similar, it means they have the same shape, even though they are if different sizes, the ratio of their corresponding sides are proportional. Thus,

18/x = 8/2

Let's solve for x as required.

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18/x = 8/2

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Answer: y= -4x+13

Step-by-step explanation:

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3 years ago
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Ray Of Light [21]
e^{2x}-e^x=6
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e^x=3
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