![trintrin227](/avatars/6032.jpg)
trintrin227
08.04.2020 •
Mathematics
What would you pay for a $215,000 debenture bond that matures in 15 years and pays $10,750 a year in interest if you wanted to earn a yield of: 4%, 5%, 6%
Solved
Show answers
More tips
- C Construction and repair How to Choose the Best Underfloor Heating?...
- C Computers and Internet How to Get Rid of Windows Genuine Check?...
- C Computers and Internet War of Social Media: Which Platform is the Leader?...
- H Health and Medicine How to Treat the Flu: A Comprehensive Guide...
- O Other What is a Disk Emulsifier and How Does it Work?...
- F Family and Home What does a newborn need?...
- F Family and Home Choosing the Right Car Seat for Your Child: Tips and Recommendations...
- F Food and Cooking How to Get Reconfirmation of Registration?...
- C Computers and Internet How to Get Rid of Spam in ICQ?...
- A Art and Culture Who Said The Less We Love a Woman, the More She Likes Us ?...
Answers on questions: Mathematics
- M Mathematics A missile is launched from the ground. Its height,h(x) can be represented by a qyadratic function in terms of time, x, in seconds after 1 second the missile is 110 feet in...
- M Mathematics Charlie just got his licence, so he decided to go max out his new ride on Circle Drive. He is speeding at a constant velocity of 120 km/h for a period of 320 s. How much of...
- M Mathematics Where do i put the point!! Please help pre alg...
- M Mathematics Over which interval is the graph of f(x) = –x2 3x 8 increasing?...
- M Mathematics It s number 18 went right over my head...
- H History What does Renaissance man mean. Can you put into my own words....
- M Mathematics Quick ASAP 25 POINTS AND BRAINLIEST FOR BEST ANSWER Multiplying Rational Expressions Simplify each expression (1/p-9)*(p^2+6p-27/p+9)...
- M Mathematics Mr. Smith and Ms. Jones start at the same place. Mr. Smith drives north for 4 miles. Ms. Jones drives east for 5 miles. What is the direct distance between Mr. Smith and Ms....
- M Mathematics What is 10*5/8-83*174/856...
- M Mathematics Which is the solution to the inequality?...
Ответ:
at 4% $238,904.53
at 5% $215,000
at 6% $194,118.66
Step-by-step explanation:
Yield is the return received on the investment, The rate of yield is determined by calculating the percentage of return to total investment.
Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond.
According to given data
Face value of the bond is $215,000
Coupon payment = C = $10750 annually
Number of periods = n = 15 years
Price of the bond is calculated by following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Yield = 4% annually
Price of the Bond = 10,750 x [ ( 1 - ( 1 + 4% )^-15 ) / 4% ] + [ $215,000 / ( 1 + 4% )^15 ] = $238,904.53
Yield = 5% annually
Price of the Bond = 10,750 x [ ( 1 - ( 1 + 5% )^-15 ) / 5% ] + [ $215,000 / ( 1 + 5% )^15 ] = $215,000
Yield = 6% annually
Price of the Bond = 10,750 x [ ( 1 - ( 1 + 6% )^-15 ) / 6% ] + [ $215,000 / ( 1 + 6% )^15 ] = $194,118.66
Ответ:
ok
Step-by-step-explanation: