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
MAVERICK [17]
3 years ago
6

A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. What is the percentage change

in the price of this bond if the market yield to maturity rises to 6.7 percent from the current rate of 5.5 percent
Business
1 answer:
statuscvo [17]3 years ago
8 0

Answer: -10.14%

Explanation:

Original Price of bond:

Interest is paid semiannually so some variables need to be adjusted:

Period = 13 * 2= 26 semi annual periods

Coupon = 6% * 1,000 * 0.5 = $30 per period

Yield = 5.5% / 2 = 2.75%

Price = $1,046

Price after yield increases to 6.7%

Period = 13 * 2= 26 semi annual periods

Coupon = 6% * 1,000 * 0.5 = $30 per period

Yield = 6.7% / 2 = 3.35%

Price = $939.88

Percentage change = (939.88 - 1,046) / 1,046

= -10.14%

You might be interested in
Which of the following will be accomplished by efficient allocations of the factors of production?
Pavlova-9 [17]

Answer:

fulfilling many needs and wants of society

Explanation:

In producing a product during production, it is always important to ask if society needs the product that we are developing. The key to every successful product is to answer whether the consumer meets the needs.

I dont know if this correect....you don't have any options(^^):^>.<

3 0
3 years ago
The ___ can transfer the right to cash a check to another party by endorsing
Schach [20]

Answer:

O A. bank officer

Explanation:

hope it helps

8 0
2 years ago
Three people invest in a business. The first two invest in the ratio 2:3, and the third person
Diano4ka-milaya [45]

Answer:

$15 million

Explanation:

The three investors' total investments would add up to  100% or 1.

The first two invested in the ration of 2:3

It means ;

Investor 1:  2/5

Investor 2: 3/5

If investor 3 invested twice as investor 1 and 2, then we can deduce that he invested ( 2/5 + 3/5) x 2

the  new denominator is 10, meaning

Investor 1 had 2/10,

investor 2 had 3/10

investor 3 had 5/10

If total investments were $30 million, then the highest investor invested

5/10 x $30million

=0.5 x $30 million

=$15 million

5 0
3 years ago
Prepare a journal entry for the purchase of office equipment on February 19 for $31,700, paying $7,600 cash and the remainder on
Pani-rosa [81]

Answer:

Dr Office equipment 31,700

Cr cash 7,600

Cr Accounts payable 24,100

Explanation:

Preparation of the journal entry for the purchase of office equipment on February 19

Based on the information given the if asset was purchased on February 19 for the amount of $31,700 in which the company paid the amount of $7,600 cash and the remainder on account which means that the journal entry will be:

February 19

Dr Office equipment 31,700

Cr cash 7,600

Cr Accounts payable 24,100

(31,700-7,600)

8 0
3 years ago
The major parts of the Stockholders' Equity section of the balance sheet are
torisob [31]

The correct answer is choice D.

The Stockholders’ Equity section of the balance sheet includes stock, paid-iin capital and retained earnings.

5 0
3 years ago
Other questions:
  • The space on freeway is fixed at any instant of time. A supply curve that shows this is
    14·1 answer
  • The regression analysis at the bottom relates average annual per capita beef consumption (in pounds) and the independent variabl
    9·1 answer
  • Suppose a manufacturing plant is considering three options for expansion. The first one is to expand into a new plant (large), t
    11·2 answers
  • In Illinois Mobile homes are generally considered?
    15·1 answer
  • Assume that the economy has three types of people. 20% are fad followers, 75% are passive investors, and 5% are informed traders
    7·1 answer
  • Which determines carrying capacity?<br> What is the best skate brand out there
    5·1 answer
  • Suppose Sharon earns $575 per week working as a programmer for PC Pros. She uses $9 to get her car washed at Spotless Car Wash.
    14·1 answer
  • In capital budgeting analysis, the cash flows are estimated based on:a.forecasts of future cash revenues, expenses, and investme
    13·1 answer
  • 1. Park Co. is considering an investment that requires immediate payment of $31,500 and provides expected cash inflows of $12,00
    9·1 answer
  • Which of the following types of diversification strategies is characterized by less than 70 percent of revenue coming from the d
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!