1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ad-work [718]
3 years ago
14

Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 11 percent, has a YTM of 9 percent, and has

11 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 9 percent, has a YTM of 11 percent, and also has 11 years to maturity. The bonds have a $1,000 par value. What is the price of each bond today
Business
1 answer:
alexandr1967 [171]3 years ago
3 0

Answer:

Results are below.

Explanation:

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

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

<u>Bond X:</u>

Coupon= (0.11/2)*1,000= $55

YTM= 0.09/2= 0.045

Years to maturiy= 11 years

Bond Price​= 55*{[1 - (1.045^-11)] / 0.045} + [1,000/(1.045^11)]

Bond Price​= 469.1 + 616.2

Bond Price​= $1,085.3

<u>Bond Y:</u>

Coupon= (0.09/2)*1,000= $45

YTM= 0.11/2= 0.055

Years to maturiy= 11 years

Bond Price​= 45*{[1 - (1.055^-11)] / 0.055} + [1,000/(1.045^11)]5

Bond Price​= 364.16 + 554.91

Bond price= $919.07

You might be interested in
Macro economic misery diminished during the first reagan administration, which means that the phillips curve'
tensa zangetsu [6.8K]
Had to look for the options and here is my answer. What it means when there is a decrease in the Macro economic misery during the first Reagan administration is that the Phillips Curve has shifted from right to left. This implies that there is an ease of the trade-off between the unemployment and inflation. Hope this answer helps.
7 0
3 years ago
Which magazine published the article "The Rise of Crowdsourcing" in 2006?
tensa zangetsu [6.8K]

why would you post on brainly, only to give the answer?

but your right, its b. wired

3 0
4 years ago
Read 2 more answers
Studying international business is important because the best way of conducting business is usually the same from country to cou
kakasveta [241]

Answer:

FALSE

Explanation:

Conducting business is usually NOT the same from country to country because:

1. DIFFERENCE IN BUSINESS ETHICS: Business ethics vary from nation to nation. European countries work from 8 am to 5 pm on a typical work day and rest on Saturdays and Sundays; but in the middle East, people do not work on Fridays but work on Sundays. They also take a lot of business time off for routine prayers during normal work hours.

2. NEED FOR TRANSLATORS: Differences of language does increase the cost of carrying out business activities in other nations. Take India and China for example; You cannot conclude that business deals will be carried out without hiring a translator who understands Hindi or Mandarin.

3. LOCAL LAWS AND CUSTOMS: The UK customs and laws require that cars be driven on the left hand side of the road but that is not the same in most other countries of the world, hence a U.S car manufacturer must be aware of the costs of redesign if he has to sell cars in the U.K.

5 0
3 years ago
Through which method of involuntary alienation may the government take private land for public use?
Oduvanchick [21]

<u>Eminent domain</u><u> is the </u><u>governments</u><u>' power to take private land for public use.</u>

Which of the following is an involuntary alienation of property?

  • Involuntary Alienation. Involuntary alienation is the transfer of real estate by law and without the owner's consent.
  • There are 4 methods by which this is accomplished: foreclosure, eminent domain, adverse possession, and by escheat.

Which of the following is an involuntary alienation of property?

A grantor does not wish to be responsible for defects in the title that arise from previous owners but will guarantee the title for the time the grantor has the ownership.

What is involuntary alienation ?

Involuntary Alienation. Involuntary alienation is the transfer of ownership without consent and control of the owner.

Learn more about Involuntary Alienation

brainly.com/question/14675036

#SPJ4

8 0
1 year ago
Internal business partnerships between supply and other functional areas such as marketing/sales, finance/accounting, and engine
podryga [215]

Answer:

a. desirable because of the interdependencies between and among functions.

Explanation:

Workflow management systems can be defined as a strategic software application or program designed to avail companies the infrastructure to setup, define, create and manage the performance or execution of series of sequential tasks, as well as respond to workflow participants.

Some of the international bodies that establish standards used in workflow management are;

1. World Wide Web Consortium.

2. Workflow Management Coalition.

3. Organization for the Advancement of Structured Information Standards (OASIS).

Workflow management systems enhances the automation and management of various business processes, as well as create partnership between different units through the business process.

Hence, internal business partnerships between supply and other functional areas such as marketing/sales, finance/accounting, and engineering are desirable because of the interdependencies between and among functions.

6 0
3 years ago
Other questions:
  • Steven is moving into his first apartment in a few weeks and has been busy packing. In addition to the things he has purchased w
    10·1 answer
  • Green Cleaning purchased $500 of office supplies on credit. The company’s policy is to initially record prepaid and unearned ite
    10·1 answer
  • Which of the following refers to a cluster of decisions concerning what organizational goals to pursue, what actions to take, an
    6·1 answer
  • The value of Terrah's personal residence has declined significantly because of a recent forest fire in the area where she lives.
    14·1 answer
  • Mr. and Mrs. Sloan incurred the following expenses during the current year, when they adopted a child: Child's medical expenses
    9·2 answers
  • Is it ethical for one company to receive funds to move into an area when other companies struggle to keep jobs from going offsho
    15·1 answer
  • Ben wants to file a complaint against a financial service company to report inappropriate use of the money he gave them to inves
    11·2 answers
  • Identify at least three ways in which the company sought to differentiate itself from rival jewelry firms.
    11·1 answer
  • PLEASE ive been asking for days i need help with this i don't understand it
    6·1 answer
  • How to calculate a trial balance​
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!