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
Answer:The answer is 7.5808×10^2
Step-by-step explanation:
Because when we take the decimal point backwards ,the exponent is in positive. And the standard form is that the decimal point comes after one non zero number.
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Answer:
The answers is below in bold.
Step-by-step explanation:
(a) A = 180 - 25.6 - 124.4 = 30 degrees.
Next use the Sine Rule:
b / sin B = c / sin C
b / sin 25.6 = 39.2/sin 124.4
b = (39.2 * sin 25.6) / sin 124.4
b = 20.53 m.
Also
a / sin A = c / sin C
a / sin 30 = 39.2 / sin 124.4
a = (39.2 * sin 30 / sin 124.4
a = 23.75 m.
b). This is solved in a similar way to (a).
First find angle C using the sine rule.
Then you will know angle A from the 180 degree Rule.
Then you can find the length of a using the Sine Rule.
The average can be calclculated as follows:
average = sum of number/number of numbers
average = (19+45) / 2 = 64/2 = 32