B.) Rule of 72; just had this question on Apex and was trying to find the answer but guessed since I couldn’t find it. Posting to save a life!
Answer: no
Explanation: You’re so stupid for finding it here :/
Answer:
$1,044.57
Explanation:
Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. We calculate the present value of both the coupon payment and the maturity payment.
According to given data
Face value of the bond is $1,000
Coupon payment = C = $1,000 x 8% = $80 annually = $40 semiannually
Number of periods = n = 15 years x 2 = 30 period
YTM = 7.5% annually = 3.75% semiannually
Price of the bond is calculated by following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond = $40 x [ ( 1 - ( 1 + 3.75% )^-30 ) / 3.75% ] + [ $1,000 / ( 1 + 3.75% )^30 ]
Price of the Bond = $713.17 + $331.40 = $1,044.57
Answer:
2.49%
Explanation:
The period 't' between 2015 and 1885 is:
The annual rate 'r' at which the original $0.02 value has been compounded over 130 years to reach a value of $0.49 is determined by:
![0.49 = 0.02*(1+r)^{130}\\r=\sqrt[130]{24.5}-1\\ r=0.0249 = 2.49\%](https://tex.z-dn.net/?f=0.49%20%3D%200.02%2A%281%2Br%29%5E%7B130%7D%5C%5Cr%3D%5Csqrt%5B130%5D%7B24.5%7D-1%5C%5C%20r%3D0.0249%20%3D%202.49%5C%25)
The cost of first-class postage has experienced an annual increase of 2.49% over this period.
