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Katyanochek1 [597]
3 years ago
8

The annual coupon rate is 2%, but coupons are paid semiannually. The yield to maturity was 1.85%. If the par value is $100,000,

how much did you pay for this bond
Business
1 answer:
erastova [34]3 years ago
7 0

Answer:

Hi the number of years to maturity  for this Bond is missing. I have tried to search for the  full question online but could not find it. However, I will help you get the technique to solve this problem.

The amount of money you pay for the Bond is its Present Value (PV) normally called Current Price of the Bond.

To calculate this, you should have the other remaining elements of the Bond which are : Coupon rate (PMT) , Period of payments within a year (P/YR), Yield To Maturity (YTM), Par Value (Future Value of Bond).

<u>So </u><u><em>assuming</em></u><u> that the Bond in question matures in </u><em><u>5 years</u></em><u> the calculation will be as follows :</u>

Pmt = (1,000,000 × 2%) ÷ 2 = $10,000

Ytm = 1.85 %

Fv = $1,000,000

P/yr = 2

N = 5 × 2 = 10

Pv = ?

You would pay $1,007,132 for this bond

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Hi how are they .how Many children do you have

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3 years ago
Is so sophisticated that even core functions such as engineering, research and development, manufacturing, information technolog
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Outsourcing is so sophisticated that even core functions such as engineering, research and development, manufacturing, information technology, and marketing can be moved outside the firm.

   The practice of employing a third party from outside a business to carry out tasks or produce commodities that were previously completed in-house by the business's own employees and personnel is known as outsourcing. Companies typically engage in outsourcing as a cost-cutting strategy.

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5 0
1 year ago
A country has a noninstitutionalized population of 243 million people. Out of that number, 38 million are under the age of 16 70
Zanzabum

Answer:

66%

Explanation:

  • Students & retirees are not considered as part of Labor force
  • people are under 16 age , are not part of working age population
  • underemployed people are doing part time jobs, so counted as employed

Total employed = Employed full time + Underemployed

                          = 96 + 31

                          = 127 million

Unemployed workers = 8 million

Labor force size = employed + unemployed people

                           = 127 million + 8 million

                           = 135 million

Working age population:

= Total non-institutionalized population - People under age of 16

= 243 - 38

= 205 million

Therefore,

Labor force participation rate:

= (Labor force size ÷ Total non institutionalized population) × 100

= (135 ÷ 205)  × 100

= 66%

8 0
3 years ago
6-19. Six sites have been identified for a parking lot in downtown Blacksburg. Because the sites are plots of land, their salvag
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Site B should be chosen based on the IRR criterion

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I hope my answer helps you

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3 years ago
All of the following securities can be sold by both an individual holding a Series 7 General Securities License and an individua
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Answer:

e. Real Estate Investment Trusts

Explanation:

An individual that holds Series 6 Investment Companies / Variable Annuities initially  is allowed only to sell mutilate bonds, initial public entry of closed end bonds of which which these cannot be traded by the person unless series 7 is passed generally that is unit investment trust and variable annuities.  to sell securities like real estate investment trust,  the broader or wider  Series 7 General Securities License is needed.

Real estate investment trust (REITs) usually gives or  issue shares of beneficial interest which trade like other stocks, either on stock exchanges or over-the-counter. These securities are not redeemable.

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