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sleet_krkn [62]
3 years ago
5

I will fail if i dont pass this test plzz helpp!!​

Mathematics
1 answer:
kirza4 [7]3 years ago
5 0

Answer:

3.38

yes

Step-by-step explanation:

2.76+4.0=6.76

6.76/2=3.38

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Nolan has a bond with a 6.1% yield, a bid price of $475, and a face value of $500. What is the original coupon rate of this Bond
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Answer:

5.8%

Step-by-step explanation:

Current yield = 6.1%

Face value of bond = $500

Market price of bond = $475

Let the original coupon rate be CR

Current\hspace{2}yield = \frac{Coupon\hspace{2}rate* Bond\hspace{2}face\hspace{2}value}{Market\hspace{2}price}*100

6.1 = \frac{CR*500}{475}*100

Multiply both sides by 475

6.1 *475 = \frac{CR*500}{475}*100*475

Cancel out the 475's from the top and bottom of the right side

6.1 *475 = CR*500*100

2897.5 = CR*50000

Flip the sides

CR*50000 = 2897.5

Divide both sides by 5000

\frac{CR*50000}{50000} = \frac{2897.5}{50000}

Cancel out 50000 from the top and bottom of the left side

CR = 0.0579%

CR = 0.0579 * 100      [convert decimal into a percentage]

CR = 5.79 %

CR = 5.8% [rounded off to the tenth place]

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