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Dafna11 [192]
2 years ago
5

A bank buys bonds with a par value of $25 million for $24,040,000. The coupon rate is 10 percent, and the bonds pay annual payme

nts. The bonds mature in four years. The bank wants to sell them in two years, and estimates the required rate of return in two years will be 8 percent. What will the market value of the bonds be in two years?
Business
1 answer:
Ilya [14]2 years ago
3 0

Answer:

$25,891,632.37

Explanation:

The computation of the market value of the bond in two years is given below:

We know that

Market value of the bonds be in two years is

= pv(rate, nper,pmt,fv)

Here  

Nper = 2

PV = ?

PMT =  25000000 × 10% = 2500000

FV = 25000000

Rate = 8%

Now  

Market value of the bonds be in two years is

= pv( 8%,2,2500000,25000000)

= $25,891,632.37

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Service cost

Answer: Option A.

<u>Explanation:</u>

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On the other hand when the total pension assets are more than the total pension liabilities, then it i known as the net pension assets.

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Paha777 [63]

Answer:

"Code Adam"

Explanation:

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ivanzaharov [21]

Explanation:

The preparation of the Assets section is shown below:-

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Accounts Receivable                             $150,000

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<u>Explanation:</u>

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