Answer:
GIRL NO WAY IM LITTERALY TAKING THAT TEST RN AND IM TRYING TO FIGURE OUT THAT SAME QUESTION LOL
Step-by-step explanation:
BUT I THINK ITS -0.5 DONT TAKE MY WORD FOR IT IM JUST ASSUMING ITS THE ANSWER BC ITS THE ONLY ONE THAT MAKES SENSE
The answer to your question is .........
30 with the remainder of 714
Answer:
1
Step-by-step explanation:
You are given a bond interest of 6% that was given on January 1, 2016, with a face value of $600,000. Also, the market yield for bonds of similar risk, that <span>the market yield for bonds of similar risk and maturity was 7% and </span>the interest is paid semiannually on June 30 and December 31. You are to find the bond value on January 1, 2016. In here, because the yield of the market is above 6%, the bonds will have a discount for bonds less than $600,000.
Cash interest
= 0.06 * $600,000 * 6/12 (because it is done semiannually)
= $18,000
7%/2 = 3.5%
PV of interest at 3.5%
= $18,000 * 6.87396
= $123,731
PV of face at 3.5%
= $600,000 * 0.75941
= $455,646
Value of bond
= PV on interest + PV of face
= $123,731 + $455,646
= $579,377
