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4vir4ik [10]
3 years ago
7

Wine and Roses, Inc., offers a bond with a coupon of 10.0 percent with semiannual payments and a yield to maturity of 11.00 perc

ent. The bonds mature in 9 years. What is the market price of a $1,000 face value bond?

Business
1 answer:
romanna [79]3 years ago
6 0

Answer:

$943.77

Explanation:

We use the present value formula i.e to be shown in the attachment below:

Data provided in the question

Future value = $1,000

Rate of interest = 11%  ÷ 2 = 5.5%

NPER = 9 years × 2 = 18 years

PMT = $1,000 × 10% ÷ 2 = $50

The formula is shown below:

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

So, after solving this, the market price of the bond is $943.77

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Answer:

OPERATING ACTIVITIES

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Zoe runs a flower shop. She recently made some changes so that one employee answers phones and completes the order and payment p
ankoles [38]

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3 years ago
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What is the difference between independent variables and dependent variables in a spreadsheet?
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OverLord2011 [107]

Answer:

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