kprincess16r
14.04.2020 •
Business
Carnival Corp issues a 9 percent coupon bond with 20 years maturity and $1,000 face (par) value. If the yield to maturity of this bond is 12 percent, find the bond's price. Group of answer choices
a. $775.92
b. $620.74
c. none of the answers is correct
d. $811.25
e. $1,009.68
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Ответ:
a. $775.92
Explanation:
For determining the bond price we have to use the present value formula i.e to be shown in the attachment below:
Given that,
Future value = $1,000
Rate of interest = 12%
NPER = 20 years
PMT = $1,000 × 9% = $90
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula we can get the price of the bond is $775.92
Ответ:
I think it’s protocol packets
Explanation: