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
Answer:
Question 1:
B
Question 2:
False
Question 3:
B
Question 4:
A
Step-by-step explanation:
<em>Please let me know if these are wrong is that I can fix them.</em>
Answer: I thin The first one 2r+3r+9
Step-by-step explanation: Because he scored a number of 2 port shots which means he scored more than one but the 9 points is just 9 points from free throws which gives only 1 point each and 3 port shots and much as 2 point shots so 3r also
2r+3r+ just 9
Answer:
You will be hot as shet
Step-by-step explanation:
e
