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ella [17]
3 years ago
6

The Whitesell Athletic Corporation's bonds have a face value of $1,000 and a 10% coupon paid semi-annually. The bonds mature in

10 years. If the yield to maturity (YTM) is 7%, what will the bond sell for
Business
1 answer:
aniked [119]3 years ago
3 0

Answer:

Bond Price = $1213.18605 rounded off to $1213.19

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 1,000 * 0.10 * 6/12  = $50

Total periods (n) = 10 * 2 = 20  

r or YTM = 0.07 * 6/12 = 0.035

The formula to calculate the price of the bonds today is attached.

Bond Price = 50 * [( 1 - (1+0.035)^-20) / 0.035]  + 1000 / (1+0.035)^20

Bond Price = $1213.18605 rounded off to $1213.19

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Answer:

D

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when you lease a vehicle, your monthly payment will be calculated based on the vehicle's depreciation, or the change between its current value and its value at the end of the lease obviously plus interest and fees. .

5 0
3 years ago
a self-employed taxpayer may be eligible to deduct amounts paid for medical insurance for themselves and for their families, as
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7 0
1 year ago
If gross pay increases by $500, total employee benefits increase by $200 and total job expenses decrease by $300, then total emp
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Answer:

option (d) increases by $1,000

Explanation:

Data provided in the question:

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Increase in total employee benefits = $200

Decrease in total job expenses = $300

Now,

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5 0
4 years ago
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6 0
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