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stira [4]
3 years ago
11

You are purchasing a 20-year, zero-coupon bond. the yield to maturity is 8.68 percent and the face value is $1,000. what is the

current market price?
Business
1 answer:
kozerog [31]3 years ago
6 0

Answer:

The answer is <u>"$182.8".</u>

Explanation:

yield to maturity = 8.68 % = 0.0868

face value = $1,000

time period = 20 years

We can solve this by using the formula;

P = $1000/(1 + 0.0868/2)²⁰ˣ²

P = $1000/(1.0434)⁴⁰

P = $1000/5.47

<u>P = $182.8</u>

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The solution to the given problem is provided below.

Explanation:

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A stock will provide a rate of return of either −18% or 26%. If both possibilities are equally likely, calculate the stock's exp
bagirrra123 [75]

Answer:

The expected return is 4% and the standard deviation is 22%.

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learn more about manufacturing costs here: brainly.com/question/8873972

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