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amm1812
3 years ago
12

A government bond issued in France has a coupon rate of 5% (paid annually) and a face value of 100 euros, and it matures in 5 ye

ars. Calculate the price of the bond (in euros) if the yield to maturity is 3.5%.
Business
1 answer:
Nina [5.8K]3 years ago
8 0

Answer:

Bond Price​= 106.77

Explanation:

Giving the following information:

Face value= 100

Coupon= 100*0.05= 5

Yield To Maturity= 0.035

Years to maturity= 5 years

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

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

Bond Price​= 5*{[1 - (1.035^-5)] / 0.035} + [100/(1.035^5)]

Bond Price​= 22.57 + 84.2

Bond Price​= 106.77

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Answers and explanations:

1) A modification problem takes places when creating a database two different type of information is entered in the same chart row generating inaccuracy. The only form to solve this issue is creating a new row so each piece of information will be stored in one row particularly.

2) There are three (3) types of modification problems: the deletion problem (<em>the single row containing information from different themes can be deleted losing data</em>), the update problem (<em>new information entered could lead to more inconsistency</em>), and the insertion problem (<em>similar to deletion, a new row can be inserted instead of the row causing problem but information will be missing</em>).

4 0
3 years ago
If he earns 5 percent on his money, how much must he deposit at the start of his studies to be able to withdraw $9,000 a year fo
Yakvenalex [24]

Answer:

He must deposit $24,509.23 at the start of his studies.

Explanation:

The amount to be deposited, PV is calculated as follows :

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Fv = $ 0

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Using a Financial Calculator, the amount to be deposited, PV is $24,509.23.

6 0
3 years ago
Describe why most countries are described as having a mixed economy​
Tamiku [17]

Explanation:

A mixed economic system is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.

8 0
3 years ago
¿Cómo pueden reorganizar sus gastos sin disminuir su bienestar y ahorrar dinero a partir de la información presentada? ¿Qué estr
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Answer:

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Explanation:

4 0
3 years ago
Intangible assets derived mostly from human capital are on the rise, according to the advisory firm Ocean Tomo. A study of the S
Neko [114]

Complete/Correct Question:

Intangible assets derived mostly from human capital are on the rise, according to the advisory firm Ocean Tomo. A study of the Standard and Poors' 500 index from 1975 to 2015 demonstrated a 17 percent increase in market value of intangible assets over this time period. Companies such as Stryker get 70 percent of its value from intangibles. Intangible assets are

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D. Non-physical.

Answer:

D, Non physical

Explanation:

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Intangible assets usually comprise of goodwill, brands, patents, etc.

In the case of the question, back in time, say the 20th century, managers or officers usually placed their concentration on tangible assets such as land, equipment, etc. But as time went on, intangible assets like they are mentioned above, intangible assets began to be considered.

Cheers.

7 0
4 years ago
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