Answer:
7.32%
Explanation:
<em>The price of a bond is the present of its interest payment and the present value of redemption value (RV</em>
Present value of the Redemption Value (RV) =
FV× (1+r/2)^(-2×n)
FV- 2000, r- yield rate, r/2= 6.74%/2 = 3.37%, n-22
=2000× (1.0337)^(-2×22)
= 465.233
Present Value of the coupon payment =Price of bond - PV of RV
= (106.657% × 2000) - 465.233
= $1667.90
PV of coupon payment= A × (1-(1+r)^(-2×n)
A- semiannual coupon payment, r -yield
1667.90 = A × (1-(1.0337)^(-2*22))/0.0337
1,667.90 = A × 22.7710
A = 1,667.90/22.7710
A= 73.246
Annual coupon payment = 2× 73.246= 146.493
Annual coupon rate = coupon payment/ face value
= (146.493/2,000 )× 100
= 7.32%
Answer:
The answer is option D
Explanation:
The bond can be issued at par, at a discount or at a premium depending on the coupon rate and the market interest. The price of the bond which pays semi annual coupon can be calculated using the formula of bond price. The formula to calculate the price of the bond is attached.
First we need to determine the semi annual coupon payment, periods and YTM.
Semi annual coupon payments = 2000000 * 0.1 * 6/12 = 100000
Semi annual periods = 5 * 2 = 10
Semi annual YTM = 0.08 * 6/12 = 0.04
Bond Price = 100000 * [(1 - (1+0.04)^-10) / 0.04] + 2000000 / (1+0.04)^10
Bond Price = $2162217.916
The price of the bond is thus $2162290 approx. The difference in answers is due to rounding off.
Answer:
The money you will have is $98020.
Explanation:
It is given that grandparents deposit $2,000 each year on birthday and the account pays 7% interest compounded annually also the time is 21 years.
we will use the compound interest formula 
.
For the first birthday the amount after 21 yr will be:
Similarly for the second birthday amount after 20yr will be:
likewise, the last compound will be:
The total value of such compounding would be
:
![\text {Total amount}=2000[(1+\frac{7}{100})^{21}+(1+\frac{7}{100})^{20}...(1+\frac{7}{100})^{1}]](https://tex.z-dn.net/?f=%5Ctext%20%7BTotal%20amount%7D%3D2000%5B%281%2B%5Cfrac%7B7%7D%7B100%7D%29%5E%7B21%7D%2B%281%2B%5Cfrac%7B7%7D%7B100%7D%29%5E%7B20%7D...%281%2B%5Cfrac%7B7%7D%7B100%7D%29%5E%7B1%7D%5D)
The total amount just after your grandparents make their deposit is:
≈($96020+2000)
≈$98020
Hence, the money you will have is $98020.
During a preliminary inquiry, the three primary questions are always asked. The first one is, "Was an offense committed". Second, "Was the suspect involved in the offense", Last, the third one is, "What is the character and military record of the suspect?".
'Pola and quint want to form and do business as river tours corporation. a corporation can consist of one or more natural persons.
A corporation is an organization (usually a group of people or a legal entity) authorized by the State to act as a single entity and legally recognized as such for a specific purpose. Early incorporated entities were established by charter. Most jurisdictions now allow the formation of new companies through registration.
The company is managed and directed by its directors and officers. Directors are appointed by shareholders and are responsible for the overall management and corporation governance of the company. The directors appoint officers who are responsible for the day-to-day management and operations of the company.
Learn more about corporation brainly.com/question/1918077
#SPJ4
