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Elis [28]
3 years ago
11

In November 2017, Treasury 4 1/2s of 2044 offered a semiannually compounded yield to maturity of 2.66%. Recognizing that coupons

are paid semiannually, calculate the bond's price. Assume face value is $1,000. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
Alexxx [7]3 years ago
6 0

Answer:

The price of a bond is $492.24

Explanation:

F= face value of bond = $1000

T=time to maturity of bond = 2044-2017= 27 years

r=yield to maturity=2.66% semi-annulay=0.0266

Formula to calculate price= F/(1+r)∧T

we have = 1000/(1+.0266)∧27 = 1000/2.0315 = $492.24

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Your credit card has a credit limit of $1,000. Your credit card company reviews your credit line every 6 months. They will not i
Mice21 [21]

Answer:

2 years and 6 months

Explanation:

after 6months

     $1,000 x 10% = $100

     $1,000 + $100 = $1,100

after 1 year

     $1,100 x 10% = $110

     $1,100 + $110 = $1,210

after 1 year and 6 months

     $1,210 x 10% = $121

     $1,210 + $121 = $1,331

after 2 years

     $1,331 x 10% = $133.10

     $1,331 + $133.10 = $1,464.10

after 2 years and 6 months

     $1,464.10 x 10% = $146.41

     $1,464.10 + $146.41 = $1,610.51

4 0
3 years ago
G MC Qu. 87 When is a goodwill impairment loss... When is a goodwill impairment loss recognized?
marin [14]

Answer:

Goodwill impairment occurs when a company decides to pay more than book value for the acquisition of an asset.

An impairment is recognized as a loss on the income statement and as a reduction in the goodwill account. The amount of the loss is the difference between the current fair market value of the asset and its carrying value or amount.

Explanation:

6 0
3 years ago
Opportunity cost is __
Mariulka [41]

Answer: A.

Explanation:

By definition, opportunity cost is the amount or value of something you gave up for another good.

For example: say you value sleeping in at $5 value going to class at $4. You decide to get up and go to class, the $4 value. Therefore, your opportunity cost is what you gave up (sleeping in) for another good/choice (going to class), is $5 since you valued sleeping in at that.

6 0
3 years ago
If the current interest rate is 5% and your semi-annual coupon paying bond has a duration of 5.33 years, how much will the price
Serhud [2]

Answer:

Percentage change in price = -5.33 * 0.00005

Explanation:

Percentage change in price = - modified duration * (Change in yield in BP/100)

Percentage change in price = -5.33 * ((0.01/2)/100)

Percentage change in price = -5.33 * (0.005/100)

Percentage change in price = -5.33 * 0.00005

7 0
3 years ago
How much total interest will she pay over the course of the mortage for this house
Novosadov [1.4K]

Answer:

How are we suppose to know??????

Explanation:

4 0
3 years ago
Read 2 more answers
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