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kompoz [17]
3 years ago
12

When patey pontoons issued 6% bonds on january 1, 2016, with a face amount of $600,000, the market yield for bonds of similar ri

sk and maturity was 7%. the bonds mature december 31, 2019 (4 years). interest is paid semiannually on june 30 and december 31?
Mathematics
1 answer:
GaryK [48]3 years ago
3 0
You are given a bond interest of 6% that was given on January 1, 2016, with a face value of $600,000. Also, the market yield for bonds of similar risk, that <span>the market yield for bonds of similar risk and maturity was 7% and </span>the interest is paid semiannually on June 30 and December 31. You are to find the bond value on January 1, 2016. In here, because the yield of the market is above 6%, the bonds will have a discount for bonds less than $600,000.

Cash interest
= 0.06 * $600,000 * 6/12 (because it is done semiannually)
= $18,000
7%/2 = 3.5%

PV of interest at 3.5%
= $18,000 * 6.87396
= $123,731

PV of face at 3.5%
= $600,000 * 0.75941
= $455,646

Value of bond
= PV on interest + PV of face
= $123,731 + $455,646
= $579,377
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Area of roundabout = 153.86 yd2

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3 0
1 year ago
52.75 with a 25% discount. How much will he pay for it?
Allisa [31]

Answer:

He pays $39.56

Step-by-step explanation:

If finding the discount, always divide the percent by 100.

25% = 0.25

52.75*0.25=13.1875

Because its money, round to hundredths place, $13.19

Subtract the "percent" (13.19) from 52.75

52.75 - 13.19 = $39.56



7 0
3 years ago
Read 2 more answers
If the diameter of a circle is 5, what is its circumference?
DanielleElmas [232]

Multiply the diameter by PI which is 3.14 so that means the circumference would be 15.7.

4 0
3 years ago
Four cards are dealt from a standard fifty-two-card poker deck. What is the probability that all four are aces given that at lea
elena-s [515]

Answer:

The probability is 0.0052

Step-by-step explanation:

Let's call A the event that the four cards are aces, B the event that at least three are aces. So, the probability P(A/B) that all four are aces given that at least three are aces is calculated as:

P(A/B) =  P(A∩B)/P(B)

The probability P(B) that at least three are aces is the sum of the following probabilities:

  • The four card are aces: This is one hand from the 270,725 differents sets of four cards, so the probability is 1/270,725
  • There are exactly 3 aces: we need to calculated how many hands have exactly 3 aces, so we are going to calculate de number of combinations or ways in which we can select k elements from a group of n elements. This can be calculated as:

nCk=\frac{n!}{k!(n-k)!}

So, the number of ways to select exactly 3 aces is:

4C3*48C1=\frac{4!}{3!(4-3)!}*\frac{48!}{1!(48-1)!}=192

Because we are going to select 3 aces from the 4 in the poker deck and we are going to select 1 card from the 48 that aren't aces. So the probability in this case is 192/270,725

Then, the probability P(B) that at least three are aces is:

P(B)=\frac{1}{270,725} +\frac{192}{270,725} =\frac{193}{270,725}

On the other hand the probability P(A∩B) that the four cards are aces and at least three are aces is equal to the probability that the four card are aces, so:

P(A∩B) = 1/270,725

Finally, the probability P(A/B) that all four are aces given that at least three are aces is:

P=\frac{1/270,725}{193/270,725} =\frac{1}{193}=0.0052

5 0
3 years ago
Determine the slope and y-intercept of each graph. Then, write the equation of the graph in slope-intercept form.​
Eva8 [605]

Answer:

-3/2=slope

y-int = (0,1)

Equation= Y=-3/2x+1

Step-by-step explanation:

7 0
2 years ago
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