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padilas [110]
3 years ago
11

Ted's Co. offers a zero coupon bond with an 11.3% yield to maturity. The bond matures in 16 years. What is the current price of

a $1,000 face value bond
Business
1 answer:
Helga [31]3 years ago
3 0

Answer:

Zero-cupon bond= $835.45

Explanation:

Giving the following information:

Face value= $1,000

YTM= 11.3%

Years to maturity= 16 years

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

<u></u>

Zero-cupon bond= [face value/(1+i)^n]

Zero-cupon bond= 1,000 / (1.113^16)

Zero-cupon bond= $835.45

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Steve's stock portfolio makes a five percent gain and he sells a portion of his holdings. Under which heading on the chart would
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Answer:

Wages, Rent, and Dividends; Steve would pay the government more in the form of taxes

Explanation:

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My carrots have grown sprouts, are they still good?
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Yes, they are. You can just cut off the end and use it like nothing happened! :)

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Mary wants to help pay for beth's education(her granddaughter). she has decided to pay for  half of the tuition costs, which are
STALIN [3.7K]

First, you have to calculate the amount of tuition when the student reaches age 18. Do this by multiplying $11,000 by 1.07 each year from age 12 until it reaches age 18. Thus, 7 times.

At age 18: 16,508

At age 19: 17,664

At age 20: 18,900

At age 21: 20,223


Then, we use this formula:

A = F { i/{[(1+i)^n] - 1}}

where A is the monthly deposit each year, F is the half amount of the tuition each year illustrated in the first part of this solution, n is the number of years lapsed.

At age 18:

A = (16508/2) { 0.04/{[(1+0.04)^6] - 1}} = $1,244.389 deposit for the 1st year

Ate age 19

A = (17664/2) { 0.04/{[(1+0.04)^7] = $1,118 deposit for the 2nd year

At age 20:

A = (18900/2) { 0.04/{[(1+0.04)^8] = $1,025 deposit for the 3rd year

At age 21:

A = (18900/2) { 0.04/{[(1+0.04)^8] = $955 deposit for the 4th year

3 0
3 years ago
Julie Lambert has a large consulting practice. New clients are required to pay one-half of the consulting fees up front. The bal
chubhunter [2.5K]

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7 0
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________ tests are used in order to determine whether an ad or commercial conveys the meaning intended.
mafiozo [28]

The test, which is used to determine whether an ad or commercial conveys the meaning intended, which is called day-after recall.

<h3>What is ad ?</h3>

Ad which is known as the advertisement is referred to the activity which grasp the attention of the customers and stimulates them to purchase the goods and services.

The day-after recall test is used to examine if an advertisement or commercial delivers the desired meaning. Therefore, it can be concluded that  day-after recall is the correct option for the given blank.

Learn more about advertisement here:

brainly.com/question/16257206

#SPJ4

6 0
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