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Inga [223]
3 years ago
15

Nungesser Corporation's outstanding bonds have a $1,000 par value, a 7% semiannual coupon, 7 years to maturity, and an 8.5% YTM.

What is the bond's price? Round your answer to the nearest cent.
Business
1 answer:
kozerog [31]3 years ago
3 0

Answer:

$922.07

Explanation:

You can solve this question using a financial calculator. I'm using (TI BA II plus)

Since it is Semiannual coupon, adjust the YTM to semi annual rate and multiply  7 years by 2 since we have 2 semi annual periods per year.

Total duration of investment ;N = 7 * 2 = 14

Interest rate; I/Y = 8.5%/2 = 4.25%

Face value; FV = 1000

Semi annual Coupon Payment ; PMT = (7%/2)*1000 =35

then CPT PV = $922.07

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Tatiana [17]

Answer:

The correct answer is letter "C":

- Background

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- Discussion

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Explanation:

Recognizing the main ideas of a report implies having a step-by-step understanding of the topic. After that, the key parts of the description must be highlighted to summarize them. Those summaries must be given a title if possible in one or a few words without making sentences out of it. Eventually, by reading the whole set of ideas anybody should be provided with a general idea of what the report is about even if they did not read it.

6 0
3 years ago
Which are the features of conditional formatting?
leva [86]

Answer:

Conditional formatting is a feature in many spreadsheet applications that allows you to <u>apply specific formatting to cells that meet certain criteria</u>. It is most often used as <u>color-based formatting to highlight, emphasize, or differentiate among data</u> and information stored in a spreadsheet.

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3 years ago
Asia Importers. Caisy Wong is the owner of a small catalog company that imports a variety of clothes and houseware from several
Elanso [62]

Explanation is^{} in a file

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6 0
3 years ago
insider trading laws prevent employees from buying or selling the securities of their employers. true or false
Pani-rosa [81]

Answer:

The statement is: False.

Explanation:

While often associated with illegal activity, insider trading encompasses both illegal and legal trading of securities and is monitored by the <em>Securities and Exchange Commission </em>(SEC). Illegal insider trading occurs when a person uses material, non-public information to decide between buying or selling a security.  

Legal insider trading takes place when corporate insiders, officers, directors, and employees trade securities issued by their own company. When a corporate insider buys or sells his company's securities, this trading activity must be reported to the SEC, which then discloses this information to the public.

4 0
3 years ago
(A bond forward) A certain 10-year bond is currently selling for $920 A friend of yours owns a forward contract on this bond tha
sleet_krkn [62]

Answer: -$100

Explanation:

Value of forward contract = Selling price - Forward price on bond

Forward price = Present value of cashflows + Present value of bond

Periodic rate = 7%/ 2 = 3.5% per semi annum

= 8% / 2 = 4%

3.5% will be used to discount the payment 6 months from now as that is the 6 month rate. The rest will be 4%.

= (80 / (1 + 3.5%) ) + ( 80 / ( 1 + 4%)²) + (940 / ( 1 +4%)²)

= $1,020.342

= $1,020

Value of forward contract = 920 - 1,020

= -$100

4 0
3 years ago
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