1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Zolol [24]
3 years ago
13

A​ zero-coupon bond is a bond that is sold now at a discount and will pay its face value at the time when it​ matures; no intere

st payments are made. A​ zero-coupon bond can be redeemed in 20 years for $ 10 comma 000. How much should you be willing to pay for it now if you want a return​ of: ​(a) 9​% compounded monthly question mark ​(b) 9​% compounded​ continuously?
Business
1 answer:
ki77a [65]3 years ago
3 0

Answer:

P = $1664.12 pay with 9​% compounded monthly  

P = 1652.98 pay with  9​% compounded​ continuously

Explanation:

given data

time period = 20 year

amount = $10000

solution

we get here compound interest for 9​% compounded monthly that is express as

FV = P\times (1+\frac{r}{n})^{nt}    .................1

here P is principal amount and r is interest rate and n compound in year and FV is future value

$10000 = P\times (1+\frac{r0.09}{12})^{12\times 20}  

solve it we get

P = $1664.12 pay with 9​% compounded monthly  

and

for 9​% compounded​ continuously

FV = P\times e^{rt}   ............2

$10000 = P\times e^{0.09\times 20}

solve it we get

P = 1652.98 pay with  9​% compounded​ continuously

You might be interested in
Lakeview Company completed the following two transactions. The annual accounting period ends December 31.
Ann [662]

Answer: Check attachment and explanation.

Explanation:

a. The question has been solved. Check the attachment.

b. LAKEVIEW COMPANY

Balance sheet (Partial)

December 31

Current liabilities

FICA Payable=$4800 + $4800= $9600

Charitable contribution payable = $2400

Withheld income tax payable = $6400

State and Federal unemployment tax payable = $560

Unearned rent revenue = $5700 - $3800 = $1900

Total current liabilities = $20860

6 0
2 years ago
Cyclical unemployment is
Andre45 [30]
Cyclical unemployment is a factor of overall unemployment that relates to the cyclical trends in growth and production that occur within the business cycle.


5 0
3 years ago
Lisa is choosing between three alternatives: a) working at her job that pays 60 dollars; b) writing a term paper which she value
Mkey [24]

Answer:

c. 80 dollars.

Explanation:

Opportunity cost represents the next best alternative missed.  It is the forfeited benefits arising from choosing one option over the others. Opportunity cost is expressed as a value or the worth of the forgone alternative.

Lisa's opportunity cost is $ 80.  She has valued going out with her friend at $ 80, which is the highest value amongst her three choices. Since she can not engage in all the three activities at the same time, the next best alternative to writing her exam is the opportunity cost.

7 0
3 years ago
What is chemical fertilizer? explain with example​
goldenfox [79]

Answer: chemical fertiliser refers to any number of synthetic compound substances created specifically to increase crop yield.

Some examples of chemical fertilisers are ammonium sulphate, ammonium phosphate, ammonium nitrate, urea, ammonium chloride.

7 0
2 years ago
Read 2 more answers
The best way to achieve significant increases in interest accrual in a savings account is through
loris [4]
Compounding. If you compound your interest, then your interest rate will go up, and you get more interest.
6 0
3 years ago
Other questions:
  • Anton Co. uses the perpetual inventory system and FIFO cost flow method. During the year, Anton purchased 400 units of inventory
    15·1 answer
  • On January 22, Muir Corporation issued for cash 20,000 shares of no-par common stock at $30. On February 14, Muir issued at par
    14·1 answer
  • What are at least two ways this image my affect demand?
    6·1 answer
  • In a lean system, work-in-process inventory is reduced to reveal production problems, which can then be
    10·1 answer
  • You are hired by the Chair of the Federal Reserve to manage the trading desk at the New York Fed and the Chair tells you that he
    13·1 answer
  • Which of the following statements is correct when considering a SWOT analysis? Group of answer choices1. Strengths and threats o
    7·1 answer
  • During the current year, Corporation G received $30,000 in dividends from a 60%-owned taxable domestic corporation. G received n
    5·1 answer
  • which individual would most likely have agreed with the views expressed by rockefeller on business combinations
    11·1 answer
  • Which of the following is NOT one of the five basic functions of an
    6·1 answer
  • If workers in one part of the labor market unionize, then all else equal, we would expect the wages of unionized workers to ____
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!