Well using mental math, subtract .04 from 1.6 to get 1.56, which is s
Answer:
a. $849.45
Step-by-step explanation:
In the above question, we are given the following information
Coupon rate = 10%
Face value = 1000
Maturity = n = 20 years
t = number of periods = compounded semi annually = 2
Percent yield = 12% = 0.12
Bond Value formula =
C/t × ([1 -( 1/ 1 + r/t)-^nt ÷] r/t) +( F/ (1 + r/t)^nt)
C = coupon rate × face value = 10% × 1000 = 100
Bond value:
= 100/2 × ( [1 - (1 /1 + 0.12/2)^-20×2]÷ 0.12/2)+ (1000/( 1 + 0.12/2)^20×2
= 50 × ( [1 - (1 /1 + 0.06) ^40] ÷ 0.06) + ( 1000/ (1 + 0.06) ^40
= 50 × ( [1 - (1/ (1.06) ^40] ÷ 0.06 ) + (1000/(1.06)^40)
= 50 × 15.046296872 + 97.222187709
= $849.45
Bond value = $849.45
Answer:
30.3
Step-by-step explanation:
Answer:
r = 26
Step-by-step explanation:
C = 2 π r
163.28 = 2 (3.14) (r)
163.28 / 2 / 3.14
26 = r
The last one is the only one that will work.
For the first one the y intercept is when x = 0. The point would be 0,4
The second one gives a point of (4,0)
The third one is nonsense. (4,4) is not on this line.
