The current value of a zero-coupon bond is $481.658412.
<h3>
What is a zero-coupon bond?</h3>
- A zero coupon bond (also known as a discount bond or deep discount bond) is one in which the face value is repaid at maturity.
- That definition assumes that money has a positive time value.
- It does not make periodic interest payments or has so-called coupons, hence the term zero coupon bond.
- When the bond matures, the investor receives the par (or face) value.
- Zero-coupon bonds include US Treasury bills, US savings bonds, long-term zero-coupon bonds, and any type of coupon bond that has had its coupons removed.
- The terms zero coupon and deep discount bonds are used interchangeably.
To find the current value of a zero-coupon bond:
First, divide 11 percent by 100 to get 0.11.
Second, add 1 to 0.11 to get 1.11.
Third, raise 1.11 to the seventh power to get 2.07616015.
Divide the face value of $1,000 by 1.2653 to find that the price to pay for the zero-coupon bond is $481.658412.
- $1,000/1.2653 = $481.658412
Therefore, the current value of a zero-coupon bond is $481.658412.
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Answer and Explanation:
fair market value=$ 37,500
Residual value = $ 10,600
Lease term = 12 months
Rate = 20%
Ans:
Monthly pay = $2668.53
Total of 12 months payments = $32,022.42
Total interest = $ 5122.42
Principle amount = 84%
Interest = 16%
Benefits of the brent's company car are pay the 35600 miles during $ 32000 approx.
Answer:
"Inflation" implies that pressure for price increases reaches across "most" markets, not just one.
Answer:
Allow one key employee to operate the bank account personally.
Explanation: Allowing one key employee to operate the bank account personally is a major non compliance in management of business ventures. Two or more persons with TRUSTED INTEGRITY can be assigned especially if they are PERMANENT STAFF and in MANAGEMENT POSITIONS. This two factors will help to Prevent or reduce the chance of any Criminal or fraudulent activities.
The researchers must be to collect and analyze all the data with the utmost subjectivity to ensure it. This could be done by:
• keeping complete and detailed notes regarding all decisions and procedures
• Do net let personal interpretation mixed with subjective observation
<span>• collecting different types of data with the different method in order to prevent mistakes</span>
