D inflation duhhh because ik my social studies♥️
Answer:
they are known as shareholders
Answer:
Market value at 8% YTM $ 743.2156
at 10% YTM $ 619.6960
Explanation:
Assuming the face value is 1,000 as common outstanding American company's bonds:
Market value under the current scenario:
<u>Present value of the coupon payment:</u>
<u />
Coupon: $1,000 x 5% = 50
time 15 years
rate 0.08
PV $427.9739
<u>Present Value of the Maturity</u>
<u />
Maturity 1,000.00
time 15.00
rate 0.08
PV 315.24
PV c $427.9739
PV m $315.2417
Total $743.2156
If the interest rate in the market increaseby 2% then investor will only trade the bonds to get a yield 2% higher that is 10% so we recalculate the new price:
C 50.000
time 15
rate 0.1
PV $380.3040
Maturity 1,000.00
time 15.00
rate 0.1
PV 239.39
PV c $380.3040
PV m $239.3920
Total $619.6960
Giving a lower price than before
Answer is in a photo. I couldn't attach it here, but I uploaded it to a file hosting. link below! Good Luck!
bit.
ly/3a8Nt8n
Do you have any choices? or any more information that I can look at to help you :)