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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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$57.11

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Which of the following is a benefit of increased levels of education?
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2 years ago
You are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the lo
sertanlavr [38]

The price and quantity of computers that should be produced to maximize the firm’s profits will be $360 and 80 computers.

The demand curve for College Computers is given as (Q) = 800 - 2P where, P = 400 - 0.5Q.

Therefore, the weekly total revenue will be:

= (400 - 0.5Q) × Q

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Weekly cost of producing computers will be:

= 1200 + 2Q²

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Maximum profit will b earned when MR = MC

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Collect like terms

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Quantity = 80 units

Therefore, the price will be:

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= TR - TC

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Read related link on:

brainly.com/question/25238337

3 0
2 years ago
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