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
Please only answer if you know the answer!!!
ExtremeBDS [4]

Answer:

y=3x

Step-by-step explanation:

y=mx+b, m is slope, b is y-intercept

5 0
2 years ago
Read 2 more answers
I don’t understand this. Can someone help me?
Aleksandr [31]

Answer: Mark me brainliest..

Step-by-step explanation: and imma put the answer inside the comments if you do so. youve got nothing to lose! :D

5 0
3 years ago
Solve the equation.<br><br> (8x3−9)3=5832
marishachu [46]
If you have a Scientific calculator you can type this in
5 0
2 years ago
Monique made several batches of soup for a potluck supper. Each batch required 3\4 0f a pound of potatoes, and she used a total
eimsori [14]

Answer:

The\ value\ of\ \frac{6 \frac{1}{2}}{\frac{3}{4}} \ is\ \frac{26}{3}.

The\ value\ of\ \frac{6 \frac{1}{2}}{\frac{3}{4}} \ is\ 8.67 (Approx).

Step-by-step explanation:

As given

Monique\ made\ several\ batches\ of\ soup\ for\ a\ potluck\ supper.

Each\ batch\ required\ \frac{3}{4}\ of\ a\ pound\ of\ potatoes.

she\ used\ a\ total\ of\ 6 \frac{1}{2}\ pounds\ of\ potatoes.

As given the expression.

= \frac{6 \frac{1}{2}}{\frac{3}{4}}

= \frac{\frac{13}{2}}{\frac{3}{4}}

Solving the above

= \frac{13\times 4}{2\times 3}

= \frac{26}{3}

In the decimal form.

= 8.67 (Approx)

Therefore\ the\ value\ of\ \frac{6 \frac{1}{2}}{\frac{3}{4}} \ is\ \frac{26}{3}.

Therefore\ the\ value\ of\ \frac{6 \frac{1}{2}}{\frac{3}{4}} \ is\ 8.67 (Approx).

6 0
2 years ago
Find the area of each composite figure. Use 3.14 for π. Round to the nearest tenth if necessary. Whats the correct label?
GuDViN [60]

Step-by-step explanation:

Square= bh

Square= 2×2=

half-circle = 1/2Pi*r×r

half-circle 2 = 1/2Pi*r×r

We would put 1/2 for the half-circle because its half of a circle. And we square it because where finding area. The middle is square, and the two up top is half a circle. Hope that helps :D

8 0
3 years ago
Read 2 more answers
Other questions:
  • Write and solve an equation.
    7·1 answer
  • If g(x)=−3x+9 g ( x ) = − 3 x + 9 and f(x)=2x+7 f ( x ) = 2 x + 7 , what is the value of g(f(x)) g ( f ( x ) ) ?
    11·1 answer
  • Evaluate 7j+5-8k when j=0.5 and k=0.25
    8·2 answers
  • Please Help! Gabe Amodeo a nuclear physicists needs 80 liters of a 30% acid solution. He currently has a 20% and a 60% solution
    7·2 answers
  • Consider the equation 5 + x = n. What must be true about any value of x if n is a negative number?
    12·1 answer
  • Alyssa is selling bags of peanuts to raise money for a fundraiser. So far, she has sold 36 bags of peanuts. This is 45% of her g
    10·1 answer
  • What is the value of m?
    5·1 answer
  • 3. <br><img src="https://tex.z-dn.net/?f=%20%5Csqrt%7B2%7D%20%28%5Csqrt%7B6%7D%20%20-%20%20%5Csqrt%7B14%7D%29" id="TexFormula1"
    7·2 answers
  • Can someone plz help its due soon
    6·1 answer
  • A type of plant is introduced into an ecosystem and quickly begins to take over. A scientist counts the number of plants after m
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!