1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
parking lot charges $5.00 for the first two hours of parking and $0.75 for each additional half hour or part thereof. Of Sam par
disa [49]

Answer:

$14.50

Explanation:

Given;

Charge for first 2 hours = $5.00 and

$0.75 for each additional half hour or part thereof.

If he parks his car for 8 hours, then the first 2 hours will be charged at a rate of $5.00

Time left to charge is 6 hours. This will be charged at a rate of $0.75

Therefore cost to Sam for parking his car for 8 hours

= (2 × $5) + (6 × $0.75)

= $10 + $4.50

= $14.50

Sam paid $14.50 for parking.

7 0
3 years ago
All IRS-certified volunteer preparers participating in the VITA/TCE programs must use Form 13614-C along with an effective inter
katen-ka-za [31]

Answer: True

Explanation:

It is required that all volunteers preparing to participate in the VITA/TCE programs must use Form 13614-C along with an effective interview for every return prepared at the site. This is a major requirement, if not they won't participate or partake in the program.

6 0
2 years ago
A bond with a coupon rate of 6 percent that pays interest semiannually and is priced at par will have a market price of _____ an
ipn [44]

Answer:

$1,000 and $30

Explanation:

We assume the market price or face value be $1,000

And the given coupon rate is 6% which is paid on semi annually basis

So, the interest payment is

= Market price or face value × coupon rate ÷ 2

= $1,000 × 6% ÷ 2

= $30

In the semi annual basis, the rate is half and the time is doubles and the same is applied above

3 0
3 years ago
When a bank requires a customer to leave a minimum balance on deposit, it is called a _______ cash balance.
d1i1m1o1n [39]

a because it means in order to avoid anything about it

3 0
2 years ago
Read 2 more answers
When you send someone a birthday card because she or he sent you one, you are complying with the norm of:?
andrew11 [14]
You are complying with the norm of reciprocity. The norm of reciprocity is a type of social norm that requires a person to understand the need to respond other person's favor by returning the benefits given from that favor. This type of norm is being studied by the organization. The organization uses the perceived organizational support and perceived psychological contract violation for the measuring tool<span>.</span>
4 0
3 years ago
Other questions:
  • The failure to record a purchase of mer chandise on account even though the goods are properly included in the physical inven to
    15·1 answer
  • What is the difference between a change in aggregate supply and a change in aggregate output supplied?
    10·1 answer
  • Complete the following statements using either "debit" or "credit":
    13·1 answer
  • Patrick has an adjusted gross income of $120,000 in the current year. He donated $50,000 in cash to a public charity; capital ga
    6·1 answer
  • Hiring decisions at Maarja's Razors are made by Maimu Maarja, the Director of Human Resources. Pay rates are approved by the Vic
    7·2 answers
  • Which of the following scenarios is an example of monopolistic competition?
    12·2 answers
  • Windsor Company leased equipment from Costner Company, beginning on December 31, 2019. The lease term is 4 years and requires eq
    8·1 answer
  • ASAP PLEASE!
    11·1 answer
  • Anna-Marie senses that one of her employees feels excluded from the rest of the group. She is surprised by this, as she believes
    9·1 answer
  • A _____________ is a fee levied by your lender that represents pre-paid interest on your mortgage loan.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!