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
vova2212 [387]
3 years ago
10

zero-coupon bond is a security that pays no interest, and is therefore bought at a substantial discount from its face value. If

stated interest rates are 11% annually (with continuous compounding) how much would you pay today for a zero-coupon bond with a face value of $2,600 that matures in 7 years

Business
1 answer:
trasher [3.6K]3 years ago
8 0

Answer:

$1,203.83

Explanation:

For computing the present value using the continuous compounding we need to apply the formula and the calculation part is also shown in the spreadsheet. Kindly find it below.

Given that

Face value = $2,600

Interest rate = 11%

Time period = 7 years

The formula is shown below:

= Face value ÷ EXP (Interest rate × Time period)

= $2,600 ÷ EXP (11% × 7)

= $1,203.83

You might be interested in
Why do you think government constitute one of the major employers in the U.S. economy ?
olga55 [171]
The government, not only of the United States, but of all countries, are in a very obvious way, also an employer. This is because the government needs people to do the task that would allow the body to be efficient in handling subjects concerning people, citizens, and the country.

The employee of the government runs from the president him/herself to the lowest position or authority in small subsection community. 
6 0
3 years ago
Product mix width refers to the ________. A) number of versions offered for each product in the line B) ways in which the variou
sergey [27]

Answer:

D. number of different product lines the company carries

Explanation:

Product mix is referred to as product assortment which is the total number of product lines a company offers to its customers.

3 0
4 years ago
How do u maintain your allowance
lesantik [10]
Keep it somewhere or forget all about it or ask your parents to put it somewhere but there not going to use it
4 0
3 years ago
Formal written promises to pay suppliers or lenders specified sums of money at definite future times are known as a.accounts rec
IrinaVladis [17]

Answer:

B)Notes payable.

Explanation:

Notes payable can be regarded as written agreements which is a (promissory notes) whereby there is agreement by one party to pay other party a definite amount of cash. Note payable can as well be regarded as loan between two parties. A note payable usually consist information such as the amount to be paid as well as interest rate. It should be noted that Formal written promises to pay suppliers or lenders specified sums of money at definite future times are known as Notes payable.

7 0
3 years ago
Why do people collect things?
Naya [18.7K]

Answer:

Why do people collect things? Previously, research suggested that people collected things because they felt an emotional connection to the subject matter. ... People also collect things for profit and for pleasure. Those who collect for profit are considered professional collectors.

Please mark brainliest

5 0
3 years ago
Read 2 more answers
Other questions:
  • Desert Company purchased land to be used as a factory site for $1,350,000. Desert paid $100,000 to tear down two buildings on th
    11·2 answers
  • CX Enterprises has the following expected dividends: $1 in one year, $1.15 in two years, and $1.25 in three years. After that, i
    10·2 answers
  • Liquidity Management. Bauman Company's total current assets, total current liabilities, and inventory for each of the past four
    5·1 answer
  • A farmer has been given the opportunity to become a part owner in a local fertilizer business. If the farmer becomes an owner of
    13·1 answer
  • An exploration of the factors underlying an​ economy's capital stock and its level of technology indicates that the relevant tim
    13·1 answer
  • Navajo Corporation traded a used truck (cost $25,000, accumulated depreciation $22,500) for a small computer worth $4,125. Navaj
    7·1 answer
  • Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of b
    9·1 answer
  • Arie is a team lead for a group of engineers working on a new product. Arie decides to assign four additional engineers to the p
    13·1 answer
  • When a change in quantity is very
    12·2 answers
  • Patricia McCarthy lives in a subsidized apartment complex for low-income senior citizens. She pays a monthly rent of $297 for a
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!