Given the current yield to maturity of the bond, the price of the bond five years for now is $883.10.
<h3>What is the price of the bond five years from now?</h3>
The first step is to determine the yield to maturity of the bond. The yield to maturity is the return on the bond if the bond is held to matuity.
Yield to matuity can be determined using a financial calculator:
Cash flow in year 0 = -875
Cash flow each year from year 1 to 25 = 85
Cash flow in year 25 = $1000
Yield to matuity = 9.86%
Future price of the bond: (coupon x future price factor) + [FV / (1 + YTM)^n)]
Future price factor = [1 - (1/YTM)^n] / YTM
= [1 - 1/0.0986^20] 0.0986 = 8.595555
[85 x 8.595555 ] + 152.478323 = $883.10
To learn more about yield to maturity, please check: brainly.com/question/26484024
Answer:
127
Step-by-step explanation:
3 x 7 + 5 - 2 - 3 + y
y = 106
3x7 = 21
21 + 5 = 26
26 - 2 = 24
24 - 3 = 21
21 + 106 = 127
89 is the missing value your welcome
Greetings.
The range is the set of y-value.
The range starts from the minimum point to maximum point.
Our minimum point starts at 0 and maximum point starts less than infinity.
Therefore the range is 0<=y<+inf
However, we do not often write that, although it is right.
Therefore we write as y≥0
Thus, the answer is B choice.
