A tenant whose apartment has just been converted to cooperative ownership
Answer:
answer
<h2><em><u>Here are six ways you can cultivate a savings culture:</u></em></h2>
- <em><u>Here are six ways you can cultivate a savings culture:HAVE A BUDGET.</u></em>
- <em><u>Here are six ways you can cultivate a savings culture:HAVE A BUDGET.CONTRIBUTE MORE TO YOUR RETIREMENT. Stop procrastinating when it comes to retirement planning. ...</u></em>
Answer:
Bond price=$888.35
Explanation:
<em>The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate</em>
<em>Value of Bond = PV of interest + PV of RV</em>
The value of bond for Local School District can be worked out as follows:
Step 1
PV of interest payments
PV = A × (1+r)^(-n)/r
A-annul interest payment:
= 7.5% × 1,000× = 75
r-Annual yield = 8.6%
n-Maturity period = 25
PV of interest payment:
=75× (1- (1+0.086)^(-25)/0.086)
= 761.22
Step 2
<em>PV of Redemption Value</em>
= 1000 × (1.017)^(-25)
= $127.131
Step 3
<em>Price of bond</em>
=761.222 + 127.13
=$888.35