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Nookie1986 [14]
2 years ago
13

Briar Corp is issuing a 10-year bond with a coupon rate of 7 percent. The interest rate for similar bonds is currently 9 percent

. Assuming annual payments, what is the present value of the bond?
Business
1 answer:
Kitty [74]2 years ago
3 0

Answer:<em> PV = 872</em>

<em></em>

Explanation:

Given:

Years to maturity (n) = 10

Coupon rate (r) = 7%

Let's assume the annual payments to be $1000

∴ Annual coupon = Annual payments × Coupon rate (r)

= $1,000 × 0.07

= $70

Interest rate (i) = 9%

We'll compute the present value using the following formula:

<em>Present Value = \frac{Annual\ payment}{(1 + r)^{n} }</em>

<em>PV = 871.65</em>

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If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the num
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Answer:

Unemployment rate is 25%

Explanation:

The percentage of people eligible for job and not currently involved in paid work or self employed and available for work as well is called rate of unemployment. It is the percentage of people who is not currently woking seeking the job.

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in global business obligation plan more ideas

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