Given the current yield to maturity of the bond, the price of the bond five years for now is $883.10.
<h3>What is the price of the bond five years from now?</h3>
The first step is to determine the yield to maturity of the bond. The yield to maturity is the return on the bond if the bond is held to matuity.
Yield to matuity can be determined using a financial calculator:
Cash flow in year 0 = -875
Cash flow each year from year 1 to 25 = 85
Cash flow in year 25 = $1000
Yield to matuity = 9.86%
Future price of the bond: (coupon x future price factor) + [FV / (1 + YTM)^n)]
Future price factor = [1 - (1/YTM)^n] / YTM
= [1 - 1/0.0986^20] 0.0986 = 8.595555
[85 x 8.595555 ] + 152.478323 = $883.10
To learn more about yield to maturity, please check: brainly.com/question/26484024
The answers are 0 and 2
This can be found by looking at the x axis and finding every point where the line crosses
Idk if this will help, but her :)
Answer:
56 units
Step-by-step explanation:
add all numbers then divide by 5
30+45+50+75+80 = 280
280/5 = 56
Answer:
The discount is $0.8d.
Step-by-step explanation:
Given that,
The original cost of Tamara's purchase is d dollars.
Tamara uses a coupon to save 20% off her purchase at the bookstore.
Discount = 20%
Discount is applied to the original cost.
Discount = d-(20/100)d
Discount = 0.8 d
Hence, the discount is $0.8d.
