Calculate the present value of a $1,300 discount bond with seven years to maturity if the yield
Question:
Calculate the present value of a $1,300 discount bond with seven years to maturity if the yield to maturity is 8%.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Given Face value FV 1300 Yield to maturity r 8 or 008 Number of ...View the full answer
Answered By
Amit Kumar
I am a student at IIT Kanpur , which is one of the prestigious colleges in INDIA.
Cleared JEE Advance in 2017.I am a flexible teacher because I understand that all students learn in different ways and at different paces. When teaching, I make sure that every student has a grasp of the subject before moving on.
I will help student to get the basic understanding clear. I believe friendly behavior with student can help both the student and the teacher.
I love science and my students do the same.
4.90+
44+ Reviews
166+ Question Solved
Related Book For
The Economics Of Money Banking And Financial Markets
ISBN: 9781292268859
12th Global Edition
Authors: Frederic S. Mishkin
Question Posted:
Students also viewed these Business questions
-
A bond has a quoted price of $1,080.42. It has a face value of $1,000, a semiannual coupon of $30, and a maturity of five years. What is its current yield? What is its yield to maturity? Which is...
-
You lend one if your siblings $5000 which they pay back in 10 days. You deposit that money into an account that will earn 4% on so annual basis. What will the money be worth in one year?
-
CoursHeroTranscribedText: A 5-year loan in the amount of $48,000 is to be repaid in equal annual payments. What is the remaining principal balance after the third payment if the interest rate is 5...
-
Strickland Co. currently charges manufacturing over-head costs to products using machine hours. However, company management believes that the use of ABC would provide more realistic cost estimates...
-
From the U.S. Census Bureau document America's Families and Living Arrangements and an article in Time magazine, we found that, in 1963, 83.0% of American women between the ages of 25 and 54 were...
-
James and Penelope Monroe purchased securities offered by Hughes Homes, Inc., a retailer of manufactured housing in Tacoma, Washington. During its audit, Deloitte & Touche found that Hughes Homes...
-
Consider the following cash flow diagram. What is the value of \(X\) if the internal rate of return is 15 percent? a. \(\$ 246\) b. \(\$ 255\) c. \(\$ 281\) d. \(\$ 290\) 0 $400 X X 1 2
-
Weather Balloons, Inc., makes reusable weather-detecting balloons. Because of a recent recession, management has ordered that standard costs be recomputed. New direct materials price standards are...
-
Karen wishes to have $19,526 cash for a new car 5 years from now. How much should be placed in an account now, if the account pays 5.5% annual interest rate, compounded weekly?
-
A lottery claims its grand prize is \($15\) million, payable over five years at \($3\),000,000 per year. If the first payment is made immediately, what is this grand prize really worth? Use an...
-
If the interest rate is 15%, what is the present value of a security that pays you \($1\),100 next year, \($1\),250 the year after, and \($1\),347 the year after that?
-
Obtain the inverse Laplace transform f(t) for the following: a. 5s/(s2+9) b. 6/(s2-9) c. 45/(s(s+3)2) d. 2/(s(s2+4s+13) e. 20/(s(s2+4) f. 20s/(s2+4)
-
What do you see as your primary challenge in becoming more culturally sensitive and aware? What are things you can do as a co-worker and leader to help others in your organization become culturally...
-
How do unmodified opinions and qualified opinions expressed in the auditor's report differ from one another?
-
Please write a report that examines the following questions: 1. What goals is the use of Nyango Star trying to achieve? 2. Why is this goal trying to be achieved? 3. What accounts, accounting, and...
-
What are Pizza Hut's current and ongoing challenges? How will a new Enterprise Risk Management strategy give the company a competitive edge?
-
Explain the differences among controlling area currency, object currency, and transaction currency. What is the purpose of number ranges in management accounting? What are the key activities involved...
-
A hollow cylindrical copper pipe is 1.50 m long and has an outside diameter of 3.50 cm and an inside diameter of 2.50 cm. How much does it weigh?
-
Why is homeostasis defined as the "relative constancy of the internal environments? Does negative feedback or positive feedback tend to promote homeostasis?
-
What incentives arise for a central bank to fall into the time-inconsistency trap of pursuing overly expansionary monetary policy?
-
What are the advantages of monetary targeting as a strategy for the conduct of monetary policy?
-
Because the public can see whether a central bank hits its monetary targets almost immediately, whereas it takes time before the public can see whether an inflation target is achieved, monetary...
-
Why is the cultural environment (& being aware of race diversity in the workplace) important for someone who wants to pursue a career as a manager across cultures?
-
Using the Indiana Code section that discusses our state's custody provisions. Define joint custody? Is joint custody a permissible option? If yes, is there a presumption in favor of joint custody?...
-
Research relies on statistics of data being studied. a. Describe the type of data you expect to collect in your forthcoming research project. b. What methods of data collection will you prefer to...
Study smarter with the SolutionInn App