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3 years ago

15

What is the value of a 20-year, zero-coupon bond with a face value of $1,000 when the market required rate of return is 9.6 perc

ent, compounded semiannually?

1 answer:

arlik [135]3 years ago

6 0

Answer:

The answer is $153.30

Explanation:

Value= M / (1 + i)^n = 1000/[ (1+(0.096/2))^40] = $153.30

Value is $153.30

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Three years ago, Kuley invested $32,200. In 2 years from today, he expects to have $50,300. If Kuley expects to earn the same an

lions [1.4K]

Answer:

8.17 years(closest to 8 years )

Explanation:

The future value of $50,300, would be accumulated after 5 years of having made the investment(3 years+2 years=5 years)

As a result, we can determine the annual rate of return based on the future value in year 5 using the future value formula below:

FV=PV*(1+r)^n

FV=future value=$50,300

PV=amount invested initially=$32,200

r=unknown=annual rate of return

n=5 years

$50,300=$32,200*(1+r)^5

$50,300/$32,200=(1+r)^5

$50,300/$32,200 can be rewritten as ($50,300/$32,200)^1

($50,300/$32,200)^1=(1+r)^5

divide index on both sides by 5

($50,300/$32,200)^(1/5)=1+r

r=($50,300/$32,200)^(1/5)-1

r=9.33%

Our next task is to determine how long( in years) it takes to accumulate a future value of $87,200 from today's point, which means we need to determine the value of the investment today( 3 years after making the investment)

FV=$32,200*(1+9.33%)^3

FV=value of investment today=$42,079.82

Lastly, we can ascertain when $42,079.82 today would become $87,200

$87,200=$42,079.82*(1+9.33%)^n

n=number of years=unknown

$87,200/$42,079.82=(1+9.33%)^n

$87,200/$42,079.82=1.0933^n

take log of both sides

ln ($87,200/$42,079.82)=n ln(1.0933)

n=ln ($87,200/$42,079.82)/ln(1.0933)

n=0.72863604/0.08920065

n=8.17 years( from today, approx 8 years)

5 0

3 years ago

How do you put a picture with your question on brainly.

Sonja [21]

Answer:

when you are making your question, their should be a little paper clip looking thing in the bottom corner, click on it and you can add your picture of get a picture form your camera roll, or file on your computer

Explanation:

I hope this helps

3 0

3 years ago

Read 2 more answers

If Ed=2 and price decreases by 1%, by what percentage and in what direction will quantity demanded change?

Arte-miy333 [17]

<u>Given:</u>

Elasticity of Demand = 2

Decrease in price = 1%

<u>To find:</u>

Change in quantity demanded

<u>Solution:</u>

The percentage change in quantity demanded is the mathematical product of the percentage change in price and elasticity of demand. This can be mathematically represented as,

$\% \text{ change in quantity demanded }=\% \text{ change in price }\times\text{Elasticity of demand }\\\\ \Rightarrow \% \text{ change in quantity demanded }=1\times2\rightarrow 2\%$

Since, there is a decrease in price, the demand for the product will increase. Therefore, we can conclude that there will be 2% increase in quantity demanded

3 0

3 years ago

The market system is also known as ________, while the command system is also known as ________.

Afina-wow [57]

The market system is also known as capitalism, while the command system is also known as communism. The market system is owned by private ownership, businessman and companies, hence it has capitalism concept. The command system is owned by a community or public.

Hence it can be said that

The market system is also known as <u>capitalism</u>, while the command system is also known as <u>communism</u>.

3 0

3 years ago

The University of Dental Health (UDH) is a state-run university focusing on the education and training of dentists, dental assis

velikii [3]

Answer:

The University of Dental Health (UDH)

Functions Type of Center

Accounting Cost Center

Bookstore Profit Center

Cafeterias Profit Center

Career services Cost Center

Community workshops Profit Center

(providing

continuing professional

education necessary for

state licensure)

Custodial services Cost Center

Financial aid Cost Center

Human resources Cost Center

Information technology Cost Center

Residence halls Profit Center

Student parking lots (fee based) Profit Center

University newspaper/radio station Cost Center

Explanation:

The UDH's cost center is a department or function that does not directly contribute to its profitability but costs it money to operate its activities. A profit center, on the other hand, directly contributes to the University's profitability by generating revenue through its activities. Please, note that the dividing line is thin. The determinant factor depends on the choices and efforts made by an organization's management to commercialize some of its internal services.

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3 years ago