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mariarad [96]
3 years ago
15

A 5% coupon, 18-year annual bond has a yield to maturity of 6.2%. Assuming the par value is $1,000 and the YTM does not change o

ver the next year, what will the price of the bond be today
Business
1 answer:
GenaCL600 [577]3 years ago
3 0

Answer:

Price of Bond=$871.997

Explanation:

<em>The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.</em>

<em>Price of Bond = PV of interest payment + PV of redemption value</em>

PV of interest payment

interest payment = 5%× 1,000 = $50

PV = A × (1- 1+r)^(-n)/r

r- 6.2%, n- 18, A- 50

PV = 50 × (1 -1.062^(-18))/0.062=533.341

PV of redemption

PV = FV × (1+r)^(-n)

PV = 1,000 × 1.062^(-18)= 338.655

Price of the stock = 533.3419 + 338.655

Price of Bond=$871.997

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What is the similarity between the separation of powers, the system of checks and balances, and federalism?
Maksim231197 [3]

Hello There!

<u><em>These are all ways that the Constitution limits government power.</em></u>

8 0
3 years ago
An associate professor of physics gets a $200 a month raise. She figures that with her new monthly salary she can buy more goods
Alborosie

Answer:

a. Her real and nominal salary have risen

Explanation:

Her nominal salary is the amount she earns. the $200 increase is an increase in her nominal salary.

Her real salary is calculated in the amount of goods and service she can purchase given her income. Since with the $200, she can buy more goods and services, her real salary has also increased.

6 0
3 years ago
John, a product manager, ensures that his team has regular meetings and no team member is absent during the meetings. He also en
Brums [2.3K]

Answer:

Cohesiveness

Explanation:

By getting his team to work together and also attend meetings regularly, John is attempting to increase his team's cohesiveness.

This is because all of the activities that John is getting his team involved in is to ensure they work together and get used to each other, be comfortable around each other and understand each other. When all of these aforementioned are imbibed by the team members, the team would have a close bond which in turn will increase the efficiency and productivity of the team.

I hope this helps.

3 0
2 years ago
What is gross pay?
ZanzabumX [31]
The answer is salary before taxes
7 0
3 years ago
Frontier Corp. sells units for $57, has unit variable costs of $29, and fixed costs of $164,000. If Frontier sells 10,000 units,
jeka94

Answer:

2.4

Explanation:

Frontier corporation sells unit for $57

The unit variable cost is $29

Fixed cost is $164,000

Frontier sells 10,000 units

The first step is to calculate the contribution margin

= 57-29×10,000

= 28×10,000

= 280,000

Profit = 280,000-164,000

= 116,000

Degree of operating leverage can be calculated as follows

= 280,000/116,000

= 2.4

6 0
3 years ago
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