Based on the coupon rate of Guggenheim Inc's bond as well as its yield to maturity, the market price is $1,768.55.
<h3>What is the market price of the bond?</h3>
First, find the coupon amount:
= 7.3% x 2,000
= $146
The market price is:
= ( 146 x (1 - (1 + 8.5%)⁻²¹) / 8.5%) + 2,000 / (1 + 8.5%)²¹
= 1,407.97 + 360.58
= $1,768.55
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Answer:
$13,241
Explanation:
From the data we were given in the question:
future value = fv = $1,500,000
time = t = 30 year
rate = r = 8%
We are required to find out How much does he need to invest to achieve his goal
solution
future value = principal ( 1+ rate)^(t-1) / rate
1500000 = principal (1 + .08)^(30-1)/ 0.08
we make principal, p, subject of the formula.
principal = 1500000 / ( (1 + .08)^(30-1)/ 0.08 )
Principal = 1,500,000 / 113.2832
principal = 13241.15
so Dan needs to invest $13241
Answer:
A. A market failure caused by an externality
Explanation:
An externality is a term in economics that refers to a cost or benefit received by a third party. However, the third party has no control over the creation of that cost or benefit. In this case the lung cancer is developed because of smoke generated by a third party.
Answer:
Benjamin put together a ad hoc committee
Explanation: