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uranmaximum [27]
3 years ago
10

Layton Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.6 percent paid semiannually and 13 years to maturit

y. The yield to maturity of the bond is 3.8 percent. What is the dollar price of the bond
Business
1 answer:
Leni [432]3 years ago
7 0

Answer:

Bond Price​= $2,162.94

Explanation:

Giving the following information:

Par value= $2,000

YTM= 0.038/2= 0.019

Coupon= (0.046/2)*2,000= $46

Years to maturity= 13*2= 26

<u>To calculate the price of the bond, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 46*{[1 - (1.019^-26)] / 0.019} + [2,000 / (1.019^26)]

Bond Price​= 936.91 + 1,226.03

Bond Price​= $2,162.94

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Answer:

Decision on the margins

Explanation:

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Also they both realise that his time is fixed (20hrs) and anytime he wants to spend extra on one activit, is time he cannot spend on another (opportunity cost).

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4 0
3 years ago
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Answer:

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Explanation:

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Which of the following is NOT one of the core capabilities that span across all five mission areas?
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Answer:

D. Health and social services. fall into the Recovery mission area only

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Mensa is a society for "geniuses." one way to qualify for membership is having an iq at least 2.5 standard deviations above aver
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x = 137.5 >>>>> Less than 1% population belong to this IQ group or higher.


7 0
3 years ago
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