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Natalija [7]
3 years ago
13

You find a zero coupon bond with a par value of $10,000 and 13 years to maturity. If the yield to maturity on this bond is 4.9 p

ercent, what is the dollar price of the bond
Business
1 answer:
PIT_PIT [208]3 years ago
4 0

Answer:

$18,763.38

Explanation:

Calculation to determine the dollar price of the bond

Using this formula

Value of bond=Par value/(1+YTM/2)^(2*time period)

Let plug in the formula

Value of bond=10,000/(1+0.049/2)^(2*13)

Value of bond=10,000/(1.0245)^26

Value of bond=10,000/1.8763378

Value of bond=$18,763.38(Approx).

Therefore the dollar price of the bond is $18,763.38

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In short, Your Answer would be Option B

Hope this helps!
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Hayward Company, a manufacturing firm, has supplied the following information from its accounting records for the month of May:
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3 years ago
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Miguel was asked to improve his company's report format. Many employees and clients found the reports hard
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<h3>Improving readability </h3>

Miguel can use shorter lines so that the chances of people getting lost when reading a sentence is reduced. He can also present the information in different columns for more organization.

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