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AVprozaik [17]
3 years ago
13

Barbara Jones is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market

interest rate for similar investments is 10.3 percent. Assume annual coupon payments. What is the current value of this bond? (Round answer to 2 decimal places, e.g. 15.25.)
Business
1 answer:
nordsb [41]3 years ago
7 0

Answer:

Zero-cupon bond= $612.52

Explanation:

Giving the following information:

Face value= $1,000

Number of periods= 5 years

Interest rate= 10.3% = 0.103

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

<u></u>

Zero-cupon bond= [face value/(1+i)^n]

Zero-cupon bond= [1,000 / (1.103^5)]

Zero-cupon bond= $612.52

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Among the 1018 ​respondents, 128 said that rising gas prices are "not at all annoying." what percentage of respondents said that
uysha [10]

Answer: The percentage of respondents said that the gas prices are“Not at all annoying”  are 12.57%

Explanation:  There are 1018 respondents out of which 128 respondents said that the gas prices are “Not at all annoying”

Percentage of the respondents are = Number of respondents who said gas prices are not annoying ÷ Total number of respondents *100

Where, Number of respondents “Not at all annoying” = 128

              Total Number of respondents = 1018

Percentage of the respondents = 128 ÷ 1018 * 100

Percentage of the respondents = 0.1257367 *100

Therefore, the percentage of respondents who said is not annoying is 12.57%.

7 0
3 years ago
2. List and explain the components of the money supply
meriva

Answer:

Currency such as notes and coins with the people.

Demand deposits with the banks such as savings and current account.

Time deposit with the bank such as Fixed deposit and recurring deposit.

4 0
3 years ago
Today is date 0. In 10 years, you plan to retire and buy a house in Norman, OK. In terms of a time line, you will retire at the
Marianna [84]

Answer:

$20,441.67

Explanation:

the present value of your house is $200,000, its future value = $200,000 x (1 + 5%)¹⁰ = $325,778.93

you can earn a 10% annual interest rate for 10 years, that means that we can use a future value of an annuity factor = 15.937

your annual investment = future value of the house / annuity factor = $325,778.93 / 15.937 = $20,441.67

6 0
3 years ago
Rice Co. was incorporated on January 1, Year 6, with $500,000 from the issuance of stock and borrowed funds of $75,000. During t
Mkey [24]

Answer:

B) $617,000

Explanation:

Issuance capital of 500,000 shall remain constant. Out of the current year net earnings 25000 we are paying 2000 as dividend so, that adds to the owners equity = 23000.

Total liabilities = total assets = 500000 + 23000 + 94000 = 617000

8 0
3 years ago
The buyers purchased a residence for $195,000. They made a down payment of $25,000 and agreed to assume the seller's existing mo
Phoenix [80]

Answer:

Option (d) purchase-money mortgage

Explanation:

Option (d) purchase-money mortgage

A purchase-money mortgage is a sort of mortgage issued to the customer or buyer of the property, in which the owner or the seller of the property himself lends the load to the buyer to buy the property.

This type of condition arises usually when the buyer is not able to get the loan from the traditional channels like the bank due to various reasons.

6 0
3 years ago
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