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
NemiM [27]
2 years ago
5

A 3-year bond with 10% coupon rate and $1,000 face value yields 8% yield to maturity. Assuming annual coupon payment, calculate

the price of the bond.
Business
1 answer:
NNADVOKAT [17]2 years ago
6 0

Answer: $1051.51

Explanation:

Coupon rate = 10%

Face value = $1,000

Yield to maturity = 8%

Annual coupon will be:

= Face value × Coupon rate

= 1000 × 10%

= 100

Therefore, the price of bond will be:

= Annual coupon × Present value of annuity factor + $1000 × Present value of the discounting factor

= (100 × 2.5771) + (1000*0.7938)

= 257.71 + 793.8

= $1051.51

The price of the bond is $1051.51

You might be interested in
Should I cover for my coworker who sneaks out
zheka24 [161]

no then you would get in trouble, but then again it would be nice for you to do it fir him. tell the boss that he needed to go do something if he gets cureas.(can't spell)

7 0
2 years ago
The basic formula for the price elasticity of demand is.
Kamila [148]

Answer: percentage change in quantity demanded

Explanation: the basic formula for the price elasticity

3 0
1 year ago
If consumers start to believe they need a product, what is likely to happen?
suter [353]
B. The demand becomes more elastic
4 0
3 years ago
the last recession changed the way many companies offer support to people and communties in need. many companies
GenaCL600 [577]
<span>The recession changed the way social assistance is provided by the means of reducing the specific financial capital allocated to these aspects, and instead encourage employees to take part in various social projects and programs that the company would be implementing.</span>
3 0
3 years ago
Suppose operation X feeds directly into operation Y. All of X's output goes to Y, and Y has no other operations feeding into it.
Maurinko [17]

Answer:

72 percent

Explanation:

The computation of the Y's maximum possible utilization is given below:

In the case when the maximum output received from C is 72 units per hour so the maximum input rate to Y should also be 72 units per hour as X and Y are linked in series

So as per the given situation, Y's maximum possible utilization is 72 percent

The same should be considered and relevant

4 0
3 years ago
Other questions:
  • All of the following are economic indicators EXCEPT
    15·2 answers
  • Match each stage in the policy process with its description.a. agenda settingmany different groups will come up with plans to fi
    8·1 answer
  • Wallyworld Company manufactures a product with the following costs per unit at the expected production level of 84,000 units: Di
    8·1 answer
  • As treasury secretary, Alexander Hamilton Select one: a. wanted to eliminate the national debt. b. opposed the federal governmen
    12·1 answer
  • Harrison Enterprises currently produces 8,000 units of part B13. Current unit costs for part B13 are as follows: Direct material
    15·1 answer
  • Identify two to three factors that affect revenue, expenses, and profit in the business of the Super Bowl:
    11·1 answer
  • If a product is to be properly commercialized, there must be integration between __________ and __________. a. marketing; after-
    6·1 answer
  • Discuss how a change in a product design could produce a change in the design of a planning and control system.
    7·1 answer
  • Mumbai Inc. has prepared the following purchases budget:
    7·1 answer
  • Broker Joe has a listing for a distressed seller. He finds a buyer for the property who enters into a contract for purchase. Ten
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!