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dedylja [7]
2 years ago
14

Union Local School District has bonds outstanding with a coupon rate of 3.4 percent paid semiannually and 19 years to maturity.

The yield to maturity on these bonds is 3.6 percent and the bonds have a par value of $5,000. What is the price of the bonds? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price $

Business
1 answer:
Talja [164]2 years ago
8 0

Answer:

PV = $4,863.24

Explanation:

Computation of the given data are as follows:

Face value = $5,000

YTM = 3.6%

YTM (Semiannual) (Rate) = 3.6% ÷ 2 = 1.8%

Coupon rate = 3.4%

Coupon rate semiannual = 3.4% ÷ 2 = 1.7%

Coupon payment ( Pmt) = 1.7% × $5,000 = $85

Time period (semiannual) (Nper) = 19 × 2 = 38

By putting the value in the financial calculator, we will get the present value.

Attachment is attached below.

PV = $4,863.24

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Answer:

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Explanation:

We can find the correct answer by laying out the information appropriately:

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Working capital = $195,000 - $57,000

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3 0
2 years ago
Assume that the expected future dividends (D) at end of periods 1,2, and 3, as well as the expected future price (P) at end of p
MariettaO [177]

Answer:

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Explanation:

Data provided in the question:

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Bruce is a part-time student (more than half time) enrolled at a qualified postsecondary educational institution. He files as a
Dmitry_Shevchenko [17]

Answer:

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Answer:

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