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:
y=2
Step-by-step explanation:
advgdsfh usb hey do f ft h
Solve for x. The multiplicity of a root is the number of times the root appears.
x= -6.847415 (multiplicity of 1)
x= 0.793705 (multiplicity of 1)
Answer:
x = 12.6
Step-by-step explanation:
When you have one fraction equated to another one, the means-extremes property allows you to cross multiply, as follows:

can be rewritten as:
a*d = c*b
For this case:

5*x = 7*9
x = 63/5
x = 12.6