The future value would be $5,194.30.
Answer:
retail - cost) / retail) * 100 =
((5 - 3.5) / 5) * 100 =
(1.5/5) * 100 =
0.3 * 100 =
30% <==
Explanation:
Answer:
The coupon rate is 6.32% or nearest to b.6.16%.
Explanation:
The price of the bond is equal to the present value of its principal repayment plus its annual coupon.
Denote: x is the coupon rate => Annual coupon payment is 1,000x
=> The price of the bond, with the yield to maturity at 10%, is calculated as below:
1,000/1.1^6 + 1,000x * (1 - 1.1^-6)/0.1 = 840 <=> 1,000x * (1 - 1.1^-6)/0.1 = 275.526 <=> 1,000x = 63.263 <=> x = 6.32%.
So, the coupon rate is 6.32% or nearest to b.6.16%.