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
Basile [38]
2 years ago
6

A 25-year, $1,000 par value bond has an 8.5% annual coupon. The bond currently sells for $875. If the yield to maturity remains

at its current rate, what will the price be 5 years from now?
Mathematics
1 answer:
Whitepunk [10]2 years ago
4 0

Given the current yield to maturity of the bond, the price of the bond five years for now is $883.10.

<h3>What is the price of the bond five years from now?</h3>

The first step is to determine the yield to maturity of the bond. The yield to maturity is the return on the bond if the bond is held to matuity.

Yield to matuity can be determined using a financial calculator:

Cash flow in year 0 = -875

Cash flow each year from year 1 to 25 = 85

Cash flow in year 25 = $1000

Yield to matuity = 9.86%

Future price of the bond: (coupon x future price factor) + [FV / (1 + YTM)^n)]

Future price factor = [1 - (1/YTM)^n] / YTM

= [1 - 1/0.0986^20] 0.0986 = 8.595555

[85 x 8.595555 ] + 152.478323 = $883.10

To learn more about yield to maturity, please check: brainly.com/question/26484024

You might be interested in
Divide round your answer to the nearest hundredth 5608.67÷7
Likurg_2 [28]

Answer:

5608.67 ÷ 7 = 801.24

4 0
3 years ago
???????I don't get it
Marta_Voda [28]
To fill the squares look for the one filled in column/row/diagonal and figure out its sum.
All other columns/rows/diagonals must be equal to that, so whenever there is a column/row/diagonal with a single missing value you can add the others up and calculate the missing value.
So you have to find those single missing value columns/rows/diagonals, fill them out and continue with the next one until the whole square is filled in.


8 0
3 years ago
. Suha has a full 600 ml bottle of wallpaper remover. She is going to mix some of the wallpaper remover with water. Here is the
erik [133]

Answer:

100 ml

Step-by-step explanation:

5 0
2 years ago
Read 2 more answers
Hi, I need the area to this problem i need the answer and to show my work no hackers please <br>​
Harrizon [31]
28 yards is the answer
4 0
2 years ago
Determine the solution set for the inequality statement? + 4 &lt; 9 y &gt; -10 y &lt; -10 y &gt; - 5/2 y &lt; - 5/2
Igoryamba

Answer:

Sorry im not sure on this one...

Step-by-step explanation:

4 0
2 years ago
Other questions:
  • A​ 12-sided die is rolled. The set of equally likely outcomes is​ {1,2,3,4,5,6,7,8,9,10,11,12}. Find the probability of rolling
    11·1 answer
  • help!! i couldn’t fit the words in here but the words are, “you are riding your bike up Elm Trail towards Deer Trail. You plan t
    8·1 answer
  • Whats the midline equation ?
    14·2 answers
  • Need an answer for this question
    5·1 answer
  • Sylvia earns $7 per hour at her afterschool job. One week she worked several hours and received a paycheck for $91. Write and so
    8·1 answer
  • Which equation is a linear function? (Look at the photo I attached for the choices) please help me I am confused!
    10·1 answer
  • Dominic is going to invest $1,800 and leave it in an account for 17 years. Assuming the interest is compounded annually, what in
    15·1 answer
  • PLS HELP ME!!!!!!!!! WILL MARK BRAINLIEST!!!!!
    9·2 answers
  • Which graph shows data that would result in the most accurate prediction of the number of games a baseball team will win in a se
    12·2 answers
  • The growth rate of the sunflower from day 14 to day
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!