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IrinaVladis [17]
4 years ago
12

Union local school district has a bond outstanding with a coupon rate of 3.3 percent paid semiannually and 20 years to maturity.

The yield to maturity on this bond is 3.7 percent, and the bond has a par value of 10000. What is the price of the bonds?

Business
1 answer:
topjm [15]4 years ago
8 0

Answer:

$9,438.22

Explanation:

For computing the price of the bond we need to apply the present value formula i.e be to shown in the attachment below:

Given that,  

Future value = $10,000

Rate of interest = 3.7%  ÷ 2 = 1.85%

NPER = 20 years  × 2 = 40 years

PMT = $10,000 × 3.3% ÷ 2 = $165

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the price of the bond is $9,438.22

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Answer:

The correct to the first fill in the blank is positive and answer to second fill in the blank is increase .

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Cross price elasticity of demand can be defined as the measurement of change in quantity demanded one good that is in response to the change in price of another good.

Cross price elasticity of demand is said to be positive when the gods are substitute, which means that if there is an increase in price of one good than there will increase in demand of other good, same way if there is decrease in price of one good than there will be decrease in demand of other good.

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Eley Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's nor
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$90.19

Explanation:

Direct material = 52.10

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Variable Admin expenses = 5.60

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Profit=5.3

Contribution per unit = 53.4

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total unit variable cost = 67.6

total variable cost =3900*67.6 = 263640

Loss contribution =1650*53.4 =88110

=263640+8810 =351750

351750/3900

=$90.19

5 0
4 years ago
If deflation occurs and your income is fixed, your real income:
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American-based Trenton Inc. has decided to establish a wholly owned subsidiary in Argentina. To decide whether to acquire an ent
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All of the following are ways you can commit to your career path except: (APEX)
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C: letting yourself be swayed by those who love you.

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