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Paraphin [41]
3 years ago
12

Business Question! Just the first problem please, thank you

Business
2 answers:
vovikov84 [41]3 years ago
8 0

Answer:

  1. 34 coupons.
  2. $33.75

Explanation:

The coupons are the interest payments the bond makes.

1. The bond has a term of 17 years and coupons are to be paid semi-annually.

This means that for every year, 2 coupon payments will be made.

In 17 years therefore:

= 17 * 2

= 34 coupons

2. The interest on this bond is 6.75% in a year. The coupon is however, semi-annual. Payment per coupon will therefore be half of the yearly rate:

= 6.75% * 1,000 * 1/2

= $33.75

snow_lady [41]3 years ago
6 0

Answer:

Huh? hshjssjsjsjshshshsjsjs

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