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stiv31 [10]
3 years ago
6

A $1000 par value bond with 5 years to maturity and a 6% coupon has a yield to maturity of 8%. Interest is paid semiannually. Ca

lculate the current price of the bond. Group of answer choices $1579.46 $918.89 $789.29 $1000.00 $743.29

Business
1 answer:
Katarina [22]3 years ago
7 0

Answer:

$918.89

Explanation:

For computing the current price of the bond we need to apply the present value formula i.e to be shown in the attachment

Given that,  

Future value = $1,000

Rate of interest = 8%  ÷ 2 = 4%

NPER = 5 years × 2 = 10 years

PMT = $1,000 × 6% ÷ 2 = $30

The formula is shown below:

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

So, after applying the above formula, the current price of the bond is $918.89

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harina [27]

Answer:

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Explanation:

The great advances in the mass media and technology have marked consumer habits in our society. One of the most influential today is television, because it can change the way people act or think and, in this way, create a different reality through advertising, most experience the impact of advertising by the large number of hours spent surfing the net.

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3 years ago
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Answer:

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Societies make choices on what to produce with the available resource. In every decision, there is a sacrifice to be made.

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Answer: When people have insurance against a certain event, the notion that those people are less likely to guard against that event occurring is called a <u>moral hazard.</u>

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However, when the same person has arranged an insurance that covers the risk of theft of the house, they will have fewer incentives than in the previous situation, to install the security door and ultimately it will be able to increase the probability of the loss in this Theft case. This behavior, for example, before insurance coverage is called moral hazard.

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Answer:

<em>Informal leadership</em>

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