Compute the price of a 6.3 percent coupon bond with 15 years left to maturity and a market interest rate of 7.0 percent. (Assume interest payments are semiannual.) (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Price of the Bond = $935.63

Explanation:

N = 15 x 2 = 30

I/Y = 7.0%/2 = 3.5%

PMT = 6.3% x 1000 / 2 =  31.5

FV = 1000

Using the Ms Excel Function

Price of the Bond = PV(N, I/Y), PMT, FV)

Price of the Bond = PV(30, 3.5%,  31.5, 1000)

Price of the Bond = $935.6278411

Price of the Bond = $935.63

Alright, lets get started.

Two sides of the rectange are 14 and s.

So, the area of the rectange would be =

So, the area of the rectange would be =

A triangle is cut from the rectangle.

The height of the triangle is =

The base of the triangle is = 14

So area of the triangle would be =

area of the triangle would be =

area of the triangle would be =

So, the area of shaded region = area of rectange - area of triangle

the area of shaded region =

As per given in question, area of shaded region is 84, hence

equation

So, this is the equation for s : Answer

Hope it will help :)