Answer:
I drew the production possibilities frontier curve for both nations, A and B, and attached it.
Explanation:
Five example of the key elements of effective event planning?
1 answer:
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Answer:
When the bond is sale at premium, it means the market rate is lower than coupon rate. So investor purchase the bond a higher price until the bond yield equal the market rate
If sold at discount, the market rate is higher than coupon rate. This means it's sold below face value to increase the bond yield to market rate.
YTM if market price is 887 = 10.7366190%
YTM if market price is 1,134.2= 7.1764596%
Explanation:
For the YTM we can calculate an estimated using the following formula:
Where:
C= coupon payment 1,000 x 9% = 90
F= face value of the bonds = 1000
P= market price = 887
n= years to maturity = 10
YTM = 10.7366190%
C= 90
F= 1000
P= 1134.2
n= 10
YTM = 7.1764596%
A more precise answer can be achieve using excle or a financial calculator.
Answer:
$200,000 ; $234,120.81 ; and $185,279.83
Explanation:
For computing the issue price we need to applied the future value which is shown in the attachment below:
a. Given that,
Future value = $200,000
Rate of interest = 10% ÷ 2 = 5%
NPER = 5 years × 2 = 10 years
PMT = $200,000 × 10% ÷ 2 = $10,000
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, applying the formula the issued price is $200,000
b. Given that,
Future value = $200,000
Rate of interest = 6% ÷ 2 = 3%
NPER = 5 years × 2 = 10 years
PMT = $200,000 × 10% ÷ 2 = $10,000
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, applying the formula the issued price is $234,120.81
c. Given that,
Future value = $200,000
Rate of interest = 12% ÷ 2 = 6%
NPER = 5 years × 2 = 10 years
PMT = $200,000 × 10% ÷ 2 = $10,000
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, applying the formula the issued price is $185,279.83
