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irga5000 [103]
3 years ago
6

consider a bond that matures in 10 years it pay9% annual coupons and $100 at maturity is the required annual rate of return on t

he bond i s 8% then the bond will sell today for

Business
1 answer:
Crazy boy [7]3 years ago
3 0

Answer:

Bond Price today = $106.71008 rounded off to $106.71

Explanation:

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and r or YTM will be,

Coupon Payment (C) = 0.09 * 100 = $9

Total periods (n)= 10

r or YTM = 8% or 0.08

The formula to calculate the price of the bonds today is attached.

Bond Price = 9 * [( 1 - (1+0.08)^-10) / 0.08]  +  100 / (1+0.08)^10

Bond Price = $106.71008 rounded off to $106.71

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3 years ago
Describe China’s strategy in Africa.
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3 years ago
Services high in qualities have characteristics that the buyer can evaluate after purchase.
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A food handler is prepping a seafood coconut curry dish on april 4 using shrimp and scallops. the shrimp has a use-by date of ap
fgiga [73]

The correct answer would be April 8.

Explanation:

A food handler or a chef is prepping a seafood coconut curry dish on April 4. This dish uses shrimps and scallops as ingredients. Shrimps has an use by date of 8th April, and the scallops has the use by date of 10th April. So now the use by date of seafood coconut curry needs to be determined.

It is very simple to determine the use by date of seafood coconut curry. The use by date of both ingredients would be seen, and the use by date of any product which is earlier than use by date of the other, would be set as the use by date of the seafood coconut curry.

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What types of insurance is David likely to get through his employer?
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Explanation: I hoped that helped.

8 0
3 years ago
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