answer.
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
cluponka [151]
2 years ago
12

There are zero coupon bonds outstanding that have a YTM of 6.09 percent and mature in 17 years. The bonds have a par value of $1

0,000. If we assume semiannual compounding, what is the price of the bonds?
Business
1 answer:
dlinn [17]2 years ago
6 0

Answer:

$3,606.49

Explanation:

the price of a zero coupon bond = maturity value / (1 + i)ⁿ

  • maturity value = $10,000
  • i = 6.09% / 2 = 3.045% semiannual interest rate
  • n = 17 years x 2 semiannual compounding = 34 periods

the price of a zero coupon bond = $10,000 / (1 + 3.045%)³⁴ = $10,000 / 1.03045³⁴ = $10,000 / 2.772779928 = $3,606.49

the formula we used to determine the market price of a zero coupon bond is basically the present value

You might be interested in
For a portfolio of 40 randomly selected stocks, which of the following is most likely to be true? a. The beta of the portfolio i
Paraphin [41]

Answer:

c. The beta of the portfolio is equal to the weighted average of the betas of the individual stocks.

Explanation:

The portfolio beta which is a measure of the systematic risk for a portfolio is calculated by taking the weighted average of betas of all the individual stocks that form up the portfolio. So the statement stating that the portfolio beta is equal to weighted average of individual stock betas is correct.

8 0
2 years ago
During July, the cost of goods manufactured at Xxis Corporation was $70,000. The beginning finished goods inventory was $19,000
JulsSmile [24]

Answer:

The cost of goods sold =  $74,000

Explanation:

<em>Cost of goods sold is computed as</em>

<em>Opening stock + production- closing inventory</em>

<em>The figure is always subtracted from the sales revenue to determine the gross profit</em>

The cost of goods of XXis Corporation

Cost of goods sold = 19,000 +  70,000 - 15,000

 = $74,000

The cost of goods sold =  $74,000

5 0
2 years ago
Norma Company had 10,000 units in work in process at January 1 that were 50 percent complete. During January, 25,000 units were
ZanzabumX [31]

Answer:

b. 29,800.

Explanation:

Number of units out in January =  25,000 units completed during month  + 80% of 6,000 units completed at month end  

= 25,000 + 4,800  

= 29,800  

5 0
2 years ago
Read 2 more answers
Benefits plans that combine sick leave, vacation time, and holidays into a total number of days employees may take off with pay
Maurinko [17]

Option D

Benefits plans that combine sick leave, vacation time, and holidays into a total number of days employees may take off with pay are called Paid time off plans

<h3><u>Explanation:</u></h3>

Paid Time Off (PTO) plans are a dilemma to regular paid leave systems that combine versatile kinds of leave (paid vacation, sick, and personal days) into an individual plan.  A PTO plan offers your company extra engaging to proposed workers by expanding the number of days they can drive off from work and however accept paid if they are usually in normal health.

Since most workers will never use whole their sick days, they can earn the contrast as additional vacation time. There is no charge to the company and workers are more satisfied.

4 0
2 years ago
Relatives gave timothy $15, $50, $25, and $18 for his birthday. what is the mean amount of money relatives gave timothy for his
ycow [4]
I think that the mean amount of money is $27

4 0
2 years ago
Read 2 more answers
Other questions:
  • The government has imposed a fine on jj’s place. the fine calls for annual payments of $60,000, $70,000, $75,000, and $50,000, r
    13·1 answer
  • Assume a company has $250 in its petty cash fund. It expends $175 as follows: $100 for delivery expenses, $40 for postage, $35 f
    5·1 answer
  • You’ve dreaded it for a while, but now you feel prepared. In 30 minutes you’ll have to terminate Tim, a 12-year employee who is
    13·1 answer
  • Ethical business communicators strive to tell the truth, label opinions so that they are not confused with facts, are objective,
    14·1 answer
  • Which of the following entries records the acquisition of office supplies on account? a.Accounts Receivable, debit; Office Suppl
    11·1 answer
  • Yakov, Ana, and Dina want to bake a cake. They are choosing among chocolate cake (C), vanilla cake (V), and red velvet cake (R).
    9·1 answer
  • Micro Tech, Inc. made the following cash expenditures during current-year related to the development of a new technology which w
    12·1 answer
  • Barnes' Brothers has the following data for the year ending 12/31/2015: Net income = $600; Net operating profit after taxes (NOP
    7·1 answer
  • The following cost data for the month of May were taken from the records of the Terrence Manufacturing Company: Depreciation on
    15·1 answer
  • Kelsey Construction has purchased a crane that comes with a 5-year warranty. Repair costs are expected to average $5000 per year
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!