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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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Step-by-step explanation:

Hope it helps.... that is how I did it

4 0
3 years ago
Someone please HELP!?
jeka94
 A negative exponent just means that the base is on the wrong side of the fraction line, so you need to flip the base to the other side.

For example

x^{-2}=\frac{1}{x^2}

or

( \frac{2}{5} )^{-4}=( \frac{5}{2} )^4

***************************************
(8r^{-5})^{-3}

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7 0
2 years ago
Work out the area of this quarter circle take pie to be 3.142 radius in image attached thanks (:
iVinArrow [24]

Answer:

<h2>38.4895 cm^2</h2>

Solution,

Radius(R)= 7 cm

Area of quarter circle:

\frac{\pi \:  {r}^{2} }{4}

=  \frac{3.142 \times 49}{4}

= 38.4895 \:  {cm}^{2}

Hope this helps...

Good luck on your assignment..

3 0
3 years ago
Read 2 more answers
Solve the system by substitution.<br> [-2.5x+y = 13.5<br> 12.25x - y=-12.25
IrinaK [193]

Answer:

x = 5/39 , y = 539/39

Step-by-step explanation:

Solve the following system:

{y - 2.5 x = 13.5

12.25 x - y = -12.25

In the first equation, look to solve for y:

{y - 2.5 x = 13.5

12.25 x - y = -12.25

y - 2.5 x = y - (5 x)/2 and 13.5 = 27/2:

y - (5 x)/2 = 27/2

Add (5 x)/2 to both sides:

{y = 1/2 (5 x + 27)

12.25 x - y = -12.25

Substitute y = 1/2 (5 x + 27) into the second equation:

{y = 1/2 (5 x + 27)

1/2 (-5 x - 27) + 12.25 x = -12.25

(-5 x - 27)/2 + 12.25 x = 12.25 x + (-(5 x)/2 - 27/2) = 9.75 x - 27/2:

{y = 1/2 (5 x + 27)

9.75 x - 27/2 = -12.25

In the second equation, look to solve for x:

{y = 1/2 (5 x + 27)

9.75 x - 27/2 = -12.25

9.75 x - 27/2 = (39 x)/4 - 27/2 and -12.25 = -49/4:

(39 x)/4 - 27/2 = -49/4

Add 27/2 to both sides:

{y = 1/2 (5 x + 27)

(39 x)/4 = 5/4

Multiply both sides by 4/39:

{y = 1/2 (5 x + 27)

x = 5/39

Substitute x = 5/39 into the first equation:

{y = 539/39

x = 5/39

Collect results in alphabetical order:

Answer: {x = 5/39 , y = 539/39

5 0
3 years ago
What does 125 have in common with a^3 when 125 is written as a power?
mestny [16]

125

2

3

Rewrite  

2

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Tap for more steps...

(

125

1

3

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Simplify.

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5

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Raise  

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2

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5 0
3 years ago
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