All categories

1 year ago

Amanda purchased a 30 year $10,000 bond at par value with a 4% coupon. What is the total value of the coupons

Mathematics

2 answers:

klasskru [66]1 year ago

8 0

Amanda purchased a 30 year $10,000 bond at par value with a 4% coupon.

We find the coupon amount each year

Coupon amount = actual amount of bond * 4%

= 10,000 * 0.04 = 400

Coupon amount for every year = 400

Total value of coupons for 30 years = 400 * 30 = 12000

$12,000 is the total value of the coupons

Vlad [161]1 year ago

5 0

To calculate the value of each coupon of the bond we multiply the nominal value by the interest rate.

That is to say:

$Coupon = Nominal value (Vn) * coupon rate (interest rate)$

$Coupon = $10 000 * 0.04 = $400$

That is the payment what to he receive annually.

After 30 years, Amanda will have received:

$$400*30 = $12 000$

You might be interested in

The proportion of a population with a characteristic of interest is p = 0.37. Find the mean and standard deviation of the sample

nadya68 [22]

Answer:

vffnxntbdnr Gn fvbbvxgngdfg

4 0

2 years ago

Suppose that a company claims that its chocolate bars weigh 1.6 ounces on average. It took many large samples, and each time the

Nuetrik [128]

Answer:

The company's chocolate bars weigh 1.6 ounces on average.

Step-by-step explanation:

We are given that a company claims that its chocolate bars weigh 1.6 ounces on average.

It took many large samples, and each time the mean weight of the sample was within the 95% confidence interval.

95% confidence level means a range of values that you can be 95% certain contains the true mean of the population.

Thus by definition we can say that The company's chocolate bars weigh 1.6 ounces on average.

Hence Option B is correct.

4 0

2 years ago

Read 2 more answers

Find the coordinates of the midpoint of a segment with the given endpoints W(-12, -7), T(-8, -4)

jasenka [17]

Finding the midpoint coordinates of any segment really boils down to finding the midpoints of each individual coordinate.

The x-coordinates of the two points are -12 and -8 - the number halfway between those two is -10, so that'll be the midpoint's x-coordinate. The y-coordinates are -7 and -4 - -5.5 is halfway between these two, so the y-coordinate will be 5.5.

Putting the two together, the midpoint of the segment WT has the coordinates (-10, -5.5).

4 0

2 years ago

Read 2 more answers

Rhianna is buying a car for $14,390. She has a $1000 trade-in allowance and will make a $1500 down payment. She will finance the

antoniya [11.8K]

Answer:

(a)

Original price for the Car Rhianna buy = $14,390.

Trade in allowance she has =$1000

So, the reduced price= $14,390-$1,000=$13,390.

Now, she make a $1500 down payment initially, so the remaining amount she pay using Auto-Loan is, $13,390-$1500=$11,890

Therefore, $11,890 money will she borrow in an auto loan.

(b)

To find the monthly(M) auto payment be:

Since the monthly auto payment in 4 year with 2.6% APR(Annual percentage rate)

Now, Monthly Auto payment(M) be :

P=$11,890, Monthly Car payment per $1000 borrowed at 2.6% for 48 months = $21.958

∴ $M=$11,890\cdot \frac{21.958}{1000}$

On solving we get, M=$261.082

Therefore, $261.082 will be her monthly auto payment.

(c)

Total amount of interest(A) she will pay ,

A=total payment in 4 years-total loan amount= $(\$261.082\cdot 48)-11,890$

=$12,531.936-$11,890=$641.936

So, the total amount of interest she will pay is, $641.936

(d)

Rhianna total payment for the car = total payment in 4 years+Down payment= $(261.082\cdot 48)+$1500$ =$12531.936+$1500=$14,031.936

(e)

∵ Rhianna is 22 years female :

From the given Data in the picture:

Rating factor= 1.2

Liability insurance 50/100/25 , Bodily injury 50/100

Premium= $310 and Property damage 25 : Premium $175

Collision insurance=$500 deductible: Premium $148

Comprehensive insurance= $500 deductible : Premium $85

Her total annual premium $= 1.2\cdot (\$310+\$175+\$148+\$85) = \$861.60$

8 0

2 years ago

Lana is the oldest of four sisters. Her youngest sister is half her age. The other two sisters are twins $2$ years younger than

vagabundo [1.1K]

Let the youngest sister be n years
Lana will be 2n years, as her youngest sister is half her age
The age of the twins separately will be 2n-2 as they are 2 years younger than Lana
So, the equation looks like this:
n + 2n + 2(2n-2) = 45
Now solve for n:
3n + 4n - 4 = 45
7n - 4 = 45
7n = 49
n = 7
So the youngest sister is 7, Lana is 14 and the twins are 12. 14 + 12 + 12 + 7 =45

8 0

2 years ago