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levacccp [35]
3 years ago
14

40 POINTSSS AND BRAINLIEST 40 POINTS

Mathematics
1 answer:
My name is Ann [436]3 years ago
3 0

Answer:

the x intercept is x=-8

the y intercept is y=12

Step-by-step explanation:

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Kevin has a 2000 bond which a 5% coupon. Kevin purchase this bond for 2070$. What is this yield of this new bond?
just olya [345]

Answer:

4.8%

Step-by-step explanation:

Bond par value = $2000

Coupon rate = 5% = \frac{5}{100} = 0.05

Market price of bond = $2070

Current yield of bond = \frac{Annual Dollar Interest Paid}{Market Price} *100%

= \frac{Coupon\hspace{3}rate*Bond\hspace{3}par\hspace{3}value}{Market\hspace{3}Price} *100%

= \frac{0.05*2000}{2070} *100%

= \frac{100}{2070} *100%

= 0.048*100%

= 4.8%

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