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
melisa1 [442]
3 years ago
12

An investor purchases a 15-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of in

terest is 5%, what is the current market value of the bond
Business
1 answer:
ra1l [238]3 years ago
6 0

Answer:

Bond Price​= $846.3

Explanation:

Giving the following information:

YTM= 0.05

Maturity= 15*2= 30 semesters

Par value= $1,000

Coupon= $40

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

<u></u>

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

Bond Price​= 40*{[1 - (1.05^-30)] / 0.05} + [1,000 / (1.05^30)]

Bond Price​= 614.90 + 231.38

Bond Price​= $846.3

You might be interested in
Pick the correct statements regarding cell references.
seropon [69]

where are the statements?

6 0
3 years ago
Read 2 more answers
the financial meltdown of 2008 was in part due to , demonstrating the dangers of relying too heavily on the quantitative techniq
Aleks [24]

The financial meltdown of 2008 was in part due to <u>quants </u>demonstrating the dangers of relying too heavily on the quantitative techniques of scientific management.

<h3>How did the financial meltdown of 2008 happen?</h3>

There were several reasons for the financial meltdown that the United States saw in 2008 and one of them was the overreliance on Quants.

Quants were quantitative models that were used to decide on the financial assets to invest in. They failed to predict the risks associated with Mortgage Backed Securities and this contributed in part to the meltdown.

Find out more on the financial meltdown of 2008 at brainly.com/question/25664180

#SPJ1

3 0
2 years ago
Cullumber Manufacturing Company purchased 14600 switches to make 6300 units. The standard allows for 2 switches per unit. The co
earnstyle [38]

Answer:

d. $1,875 unfavorable

Explanation:

Direct material quantity variance is computed as;

= (AQ - SQ) × SP

AQ = Actual quantity = 6,300 units

SQ = Standard quantity = 14,200 / 2 = 7,300 units

SP = Standard price = $0.80

Direct material quantity variance

= (6,300 - 7,300) × 0.80

= -1,000 × $0.80

= -1,875 unfavorable

3 0
3 years ago
Blue Spruce University sells 6,800 season basketball tickets at $45 each for its 10-game home schedule. Prepare a tabular summar
JulsSmile [24]

Answer: Blue spruce university Basketball games

Explanation: The Sale of Season tickets = $45 *10= $450

while the total revenue accrued after the first game=6800*450=$3,060,000

4 0
3 years ago
What effects did the great depression have on the credit industry
NikAS [45]
It expanded the credit industry because all americans credit was effected by the great depression

8 0
3 years ago
Read 2 more answers
Other questions:
  • ​ home &amp; barn construction, inc., contracts with idyll farms to build a new dairy barn on idyll's property for which idyll a
    11·1 answer
  • A(n) ________ refers to the first public offering of a corporation's stock.
    11·1 answer
  • Brad expects interest rates to increase and purchases a put option on Treasury bond futures with an exercise price of 97-00. The
    11·1 answer
  • In times of falling prices, choosing LIFO over FIFO as an inventory cost method would affect the financial statements as follows
    13·1 answer
  • A winning strategy is one that results in a company becoming the dominant industry leader. fits the company's internal and exter
    10·1 answer
  • Susan opened a savings account with $750 at 2.9 percent annual interest. If she keeps the money in the account for 2 years, what
    12·1 answer
  • Finerly Corporation sells cosmetics through a network of independent distributors. Finerly shipped cosmetics to its distributors
    13·1 answer
  • 2 (03.01 LC)<br> An unsecured loan (10 points)
    7·1 answer
  • What would happen if I were to buy a truck for $50,000 and expense all of it during that period, rather than handle it the way t
    6·1 answer
  • A business opportunity that match traveling​
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!