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adell [148]
3 years ago
9

There are zero coupon bonds outstanding that have a YTM of 5.97 percent and mature in 19 years. The bonds have a par value of $1

0,000. If we assume semiannual compounding, what is the price of the bonds
Business
1 answer:
Fed [463]3 years ago
8 0

Answer:

market price = $1,104.20

Explanation:

yield to maturity of zero coupon bonds = (face value / market price)¹/ⁿ - 1

  • YTM = 5.97%
  • n = 19 x 2 = 38
  • face value = $10,000

(face value / market price)¹/ⁿ = YTM + 1

face value / market price = (YTM + 1)ⁿ

market price = face value / (YTM + 1)ⁿ

market price = $10,000 / 1.0597³⁸ = $10,000 / 9.0563 = $1,104.20

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Answer:

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Explanation:

Working notes:

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which is equal to  = 25.2 hours.

3 0
3 years ago
The sustainable growth rate is based on the premise that:
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The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale
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Answer and Explanation:

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5. Rent expenses Dr, $5,500  

    To Cash $5,500

(Being rent expenses is recorded)

6. Prepaid Insurance Dr, $6,550  

     To Cash $6,550

(Being insurance is recorded)

7. Accounts Payable Dr, $102,000  

     To Cash $102,000

(Being accounts payable is recorded)

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    To Accounts receivable $76,500

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6 0
3 years ago
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false

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pretty sure that is false as one can have life insurance without property.

Still double check...

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