Pagsasagawa NG angkop na kilos NG pamahalaan tungo sa pagtupad NG mga tungkulin sa pamilihan?

7. Valuing semiannual coupon bonds Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual paymen

Art [367]

The value of the Treasury note is $849,059.88 and this is selling at a discount.

The value of a treasury note depends on different factors such as:

The initial value
The coupon rate
The value of the yield to maturity

Considering these aspects, let's calculate the value of the treasury note

Initial value: $1,000,000

$1,000,000 x 6% (coupon rate) = $60,000

$60,000 / 2 (the coupon pays twice a year) = $30,000 - This value refers to the payment per period

Let's consider now the number of periods and the yield to maturity

Number of periods: 5 x 2 (the number of periods double) = 10 periods

Yield to maturity or rate: 9.90% / 2 (cash flow decreases by half) = 4.95%

Finally, you can use the PV formula to calculate the value:

PV (4.95%,10,-30000,-1000000) - This part is done in excel program as the original formula is quite complex

PV =$849,059.88

Based on this, the value of the note is $849,059.88, and you can conclude this is selling at a discount because this value is lower than the initial value of 1,000,000.

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7 0

2 years ago

Freeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee

ivann1987 [24]

Answer:

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Explanation:

3 0

3 years ago

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which one of the following is a potential problem with management's comunication of financial information that causes third part

Otrada [13]

Complexity of transactions affecting the financial statements and

Remoteness of the user from the organization

<h3>What is financial statement?</h3>

The business operations and financial performance of an organization are described in financial statements, which are written records. To ensure accuracy and for tax, financing, or investing purposes, financial statements are frequently audited by government entities, accountants, corporations, etc.

The balance sheet, income statement, cash flow statement, and statement of changes in equity are the four basic financial statements for for-profit entities. Financial statements are used by nonprofit organizations, although they are similar.

Financial statistics are used by investors and financial analysts to assess a company's performance and forecast the course of its stock price in the future. The annual report, which includes the company's financial statements, is one of the most crucial sources of accurate and audited financial data.

Learn more about financial statements

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7 0

1 year ago

Beth is a retired teacher who lives in dallas and does some consulting work for extra cash. at a wage of $40 per hour, she is wi

Ipatiy [6.2K]

Price Elasticity of Supply. The price elasticity of supply is calculated as the percentage change in quantity divided by the percentage change in price.
Using the Midpoint Method
PES = ((Q2-Q1) / ((Q2 + Q1) / 2)) / ((P2-P1) / ((P2 + P1) / 2))
PES = (((10) - (7)) / (((10) + (7)) / 2)) / (((50) - (40)) / (((50) + (40)) / 2))
PES = 1.59
the elasticity of beth's labor supply between the wages of $ 40 and $ 50 per hour is approximately 1.59
In this case, to 1% rise in price causes an increase in quantity supplied of 1.59%
answer:
the elasticity of beth's labor supply between the wages of $ 40 and $ 50 per hour is approximately 1.59
In this case, to 1% rise in price causes an increase in quantity supplied of 1.59%

4 0

3 years ago

How does Truth In Lending protect consumers when shopping for a loan?

Ainat [17]

<span>How does Truth In Lending protect consumers when shopping for a loan</span>

3 0

3 years ago

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