Galaxie85111
26.10.2020 •
Business
Madsen Motors's bonds have 14 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 10%, and the yield to maturity is 11%. What is the bond's current market price? Round your answer to the nearest cent.
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Ответ:
$930.18
Explanation:
The bond's current market price is its Present Value (PV). This is calculated as:
FV = $1,000
Pmt = $1,000 × 10% = $100
i = 11%
P/yr = 1
N = 14
PV = ?
Using a financial calculator to input the values as above, the bond's current market price (PV) is $930.18
Ответ:
$75 x .20=$15
75-15=$60