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
Olenka [21]
3 years ago
9

Suppose a 10-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading for $1034.74. What is the bond’s yield to

maturity (expressed as an APR with semiannual compounding)? If the bond’s yield to maturity changes to 9% APR, what will the bond’s price be?
Business
1 answer:
Mamont248 [21]3 years ago
7 0

Answer:

The yield to maturity is 7.5%

The price of the bond at 9% yield to maturity is $934.96  

Explanation:

In calculating the yield I used the rate formula in Excel, rate formula is given as:

=rate(nper,pmt,-pv,fv)

nper is period to maturity of 10 years multiplied by 2(semi-annual compounding)

pmt is the coupon interest payable semi-annually which  8%*$1000/2=$40

pv is the current price of $1034.74

fv is the face value of $1000

=rate(20,40,-1034.74,1000)

=3.75%

APR=3.5%*2=7.5%

Bond price is the present value of the bond at yield of 9% with semi-annual yield of 4.5%

=pv(rate,nper,pmt,fv)

=pv(4.5%,20,40,1000)

pv=$934.96  

find attached for details

Download xlsx
You might be interested in
What is input, conversion process, and output
blondinia [14]
Hello!

Think of a machine. You put something in. This is the input. The conversion process is whatever goes on inside the machine. Let's say that the machine will spray paint a vase you put into it.  The vase is the input. The spray painting is the conversion process. What comes out of the machine, or the result, is the output. In our example it would be the painted vase.

The conversion process changes the input into the output.

For example, think of a function, or a table. Let's say that we have the rule, +1. Let's say our input is 1. The conversion process is +1. This makes 1 become the output of two.

I hope this helps!
6 0
3 years ago
What is the answer because I don’t know
Pachacha [2.7K]

D. the president show have enough power to lead.

5 0
3 years ago
We respect our employees and value their diversity" is an example of a statement you are most likely to find in the organization
Julli [10]

Answer: Mission

Explanation:

 The organizational mission is one of the type of approach that is used for reflecting the various types of products and the services information and also it important values.

The main main objective of the organizational mission is that it helps in providing the various types of company statement based on its the organizational specific goals and the values.

 According to the given question, the mission is one of the organizational factor that helps in value the employees and also respect their specific diversity.  

 Therefore, Mission is the correct answer.

3 0
2 years ago
when valuing raw materials inventory at lower-of-cost-or-market, what is the meaning of the term market
Akimi4 [234]

when valuing raw materials inventory at lower-of-cost-or-market, what is the meaning of the term market Replacement cost, Net realizable value, or Net realizable value less a normal profit margin.

<h3>What is Replacement cost?</h3>
  • The cost to replace a critical asset, such as a piece of real estate, an investment security, a lien, or another object, with one of equal or greater worth is referred to as replacement cost.
  • A replacement cost, which is often referred to as "replacement value," can change depending on a variety of variables, including the cost of preparing assets for use and the market worth of the parts needed to rebuild or repurchase the asset.
  • Replacement costs are frequently used by insurance companies to calculate the value of an insured item. Accountants, who use depreciation to expense the cost of an asset over its useful life, also regularly employ replacement costs.

To learn more about Replacement cost with the given link

brainly.com/question/15046979

#SPJ4

7 0
2 years ago
Which phrase correctly defines the motives of a business? A. satisfying the needs of people B. helping a country's economy grow
liubo4ka [24]

Answer:

d

Explanation:

8 0
3 years ago
Read 2 more answers
Other questions:
  • Which of the following options has drastically reduced the costs of operating and transacting on a global​ scale?
    7·1 answer
  • What is a value that can be used to ensure that hashed plaintext will not consistently result in the same digest?
    9·1 answer
  • A company declared a cash dividend of $8,560 on december 5, 2015. the company made a cash dividend payment on january 8, 2016. w
    14·1 answer
  • Comdex Inc. manufactures parts for the telecom industry. One of its products that currently sells for $210 is now facing a new c
    9·1 answer
  • In most industries, getting into which kind of role usually requires experience? A. Entry-level B. Intership C. Managerial
    12·2 answers
  • Wright Company's cash account shows a $29,300 debit balance and its bank statement shows $27,600 on deposit at the close of busi
    14·1 answer
  • For your speech to be effective, you must carefully consider what your specific
    6·1 answer
  • Analysis of Accounts Receivable and Allowance for Doubtful Accounts Steelcase, Inc. reported the following amounts in its 2014 a
    10·1 answer
  • 5. Would most standard bank accounts work for Janet based on her banking needs? Why or why not?
    14·1 answer
  • When a $10 check written on the first national bank of chicago is deposited in an account at citibank, then.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!