1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Orlov [11]
3 years ago
10

You find a zero coupon bond with a par value of $10,000 and 19 years to maturity. The yield to maturity on this bond is 4.7 perc

ent. Assume semiannual compounding periods. What is the price of the bond

Business
1 answer:
Nikitich [7]3 years ago
8 0

Answer:

$4,136.77

Explanation:

In this question, we use the present value formula which is shown in the attachment below:

Given that,  

Future value = $10,000

Rate of interest = 4.7%  ÷ 2 = 2.35

NPER = 19 years  × 2 = 38 years

PMT = $0

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

After solving this, the price of the bond is $4,136.77

You might be interested in
Marcus can afford a monthly mortgage payment of $900. If he is eligible for a 30-year, 5% mortgage (where the mortgage factor is
tigry1 [53]

Answer:

option (c)  $167,597.77

Explanation:

Data provided in the question:

Monthly mortgage payment = $900

Duration of loan, n = 30 years = 360 months

Interest rate = 5%

Monthly rate of interest = 5% ÷ 12 = 0.4167% = 0.004167

Now,

Mortgage loan can he afford

= Monthly mortgage payment × [ (1 - ((1 + r)ⁿ)⁻¹ ) ÷ r ]

= $900 × [ (1 - ((1 + 0.004167)³⁶⁰)⁻¹ ) ÷ 0.05 ]

= $167,597.77

Hence,

The answer is option (c)  $167,597.77

7 0
2 years ago
What is the biggest difference in who makes the contributions to 401(k) and IRA retirement plans?
allsm [11]
In a 401k the employer usually matches a percentage and if you are lucky dollar for dollar, where in an IRA it is does an an extra option with a set amount of money usually 2500 or more for each IRA contribution.
5 0
3 years ago
A deficit on the current account Multiple Choice means that a nation is making international transfers. has no relationship to t
Sliva [168]

Answer:

The correct option is C

Explanation:

The deficit or shortage on the current account of the country, is defined as the measurement or determination of the trade of the company where the goods and the service value, it imports exceeds or increase the value of the products it exports.

The current account of the country states the foreign transactions of the country within the time period.

So, when there is deficit or shortage on the current account, it means that usually, it will cause deficit in the finance as well as the capital account of the country.

4 0
3 years ago
Margot is giving a persuasive speech in her health class. Her topic is obesity in kids. Her first main point is, "Childhood obes
VladimirAG [237]

Answer: Problem-Solution

Explanation: Problem solution pattern is process of moving from a start state (problem) to a goal state (solution).

Margot starts from talking about child obesity and how this can be resolved.

5 0
3 years ago
During autumn​ months, passenger railroads across the globe deal with a condition called slippery rail. It results from a combin
Dafna11 [192]

Answer:

A) This is an example of a fixed cost because the cost​ doesn't vary with the number of trains.

Explanation:

A fixed cost is a cost that does not vary as the total output varies. In this case, the number of trains using the tracks would be the total output, and the tracks need to bee cleaned regardless of how many trains will use them. Since the costs do not vary depending on the number of trains that will use the tracks, it is considered a fixed cost.

3 0
3 years ago
Other questions:
  • Aqua Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of $2.00 each. The terms of the iss
    5·1 answer
  • Country a produces about four times the amount of diamonds in carats produced in country
    5·1 answer
  • Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $2
    15·1 answer
  • A company is considering purchasing a machine for $21,000. The machine will generate income from operations of $2,000; annual ne
    14·1 answer
  • A 35-year-old mother of three children wants to buy a life insurance policy for herself. What will help her determine the dollar
    8·1 answer
  • Sometimes when an organization first starts horizontal coordination efforts to promote innovation, is needed to help employees c
    5·1 answer
  • Education can be both a public and a private good; what other kind of a good is it?
    10·1 answer
  • For which person would renting a home be a better option than getting a mortgage?
    10·2 answers
  • The CEO/chairman of PharmaPacifica was recently killed in an airplane crash. This tragedy has thrown PharmaPacifica into turmoil
    15·1 answer
  • What should you not do during a hostage rescue attempt?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!