Answer:
Price of bond=$691.034
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
Let us assume the bond had a per value of 1000 and also redeemable at par
The value of the bond can be worked out as follows:
Step 1
<em>Calculate the PV of interest payments</em>
semi Annual interest payment
= 8.5% × 1000 × 1/2= 42.5
PV of interest payment
= 42.5 × (1-(1.0629)^(-25×)/0.0629)
=643.6780
Step 2
PV of redemption Value
PV = 1000 × (1-(1.0629)^(-25×2) = 47.35
Step 3
Price of bond
=643.678 + 47.356
=$691.034
Price of bond=$691.034
Answer:
i think its b even tho im probbly wrong
The correct answer is true.
The United States issues savings bonds, which is equivalent to loaning them money. Savings bonds are a very safe investment for the investors and gives the United States cash flow.
Answer:
A <u>customs union</u> is an intermediate step in the transition from a free trade area to a common market.
According to the regulations in the united states, the correct way to write
$ 450.05 in words on check would be :
Four hundred fifty and 05/100
hope this helps
