You bought a discount bond with a face value of $10,000 with a maturity of 1 year.

Fantastic news! We've Found the answer you've been seeking!

Question:

You bought a discount bond with a face value of $10,000 with a maturity of 1 year. What market price do you pay for the bond if the market interest rate is 30% APR?

Related Book For answer-question

Financial Markets And Institutions

ISBN: 978-0132136839

7th Edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

See More Books

Posted Date: May 31, 2019 08:12 AM

See More Questions

A one-year discount bond with a face value of $1,000 was purchased for $900. What is the yield to maturity? What is the yield on a discount basis?
You own a 5-year bond with a face value of $1,000 and a coupon rate of 5 percent with annual payments. The bond is currently worth $810.46. If market interest rates remain unchanged, what will be the...
A recently issued industrial bond with a face value of $10,000 has a coupon rate of 8% per year, payable annually. The bond matures 20 years from now. Jeremy is interested in buying one bond. If he...
Jefferson Company purchased a piece of equipment on January 1, 2014. The equipment cost $60,000 and has an estimated life of 8 years and a salvage value of $8,000. What was the depreciation expense...
What creates under-applied or over-applied overhead when applying overhead to jobs? Discuss.
Kathy Choi, a public accountant, has completed the audit of notes payable and other liabilities for Valley River Electrical Services Ltd. and now plans to audit contingent liabilities and...
Brian Rafferty ingested finasteride, a drug prescribed to him to treat an enlarged prostate. Finasteride is a generic version of Proscar, a drug manufactured by Merck. Some time after he started to...
The bookkeeper for Andy's Country Music Bar went insane and left this incomplete balance sheet. Andy's working capital is $95,000 and its debt to assets ratio is 40 percent. Required Complete the...
The money supply process involves various factors, including the actions of commercial banks, the central bank's monetary policy, and the public's demand for money. My questions are: How do these...
You are a financial analyst in the financial planning and analysis department of WCC. You have been assigned the following: Complete a five-year forecast based on the above assumptions. Do you...
Analyze and identify the types of arguments and the resultant biases, fallacies or persuaders that have been used to promote the claim that hydroxychloroquine can be used to prevent or treat COVID-19.
(2) (All Students-18 Marks). Suppose the Spanish Government subsidises housing expenditures of low-income families by providing a three dollar-for-dollar subsidy to a family's housing expenditure....
Problem 1. Write a program that inputs three integers from the keyboard and prints the sum, average, product, smallest and largest of these numbers. The screen dialogue should appear as follows:...
In a double-sideband suppressed-carrier amplitude modulation (DSB-SC AM) system, the modulating signal is given as m(t) = cos(20nt) + 2 cos(26t). The modulating signal is to be transmitted by the...
A circular-shaped object of mass 11 kg has an inner radius of 6 cm and an outer radius of 25 cm. Three forces (acting perpendicular to the axis of rotation) of magnitudes 10 N, 28 N, and 13 N act on...
Which country sold the cheapest one kilogram of banana and the most expensive in the year 2020? What do you think of the prices? You need to research the banana prices.
A Company shows the following balances on its comparative financial statements: 2021 2020 Inventory $13,000 $12,000 Accounts Receivable $7,300 $7,000 Accounts Payable $9,600 $9,200 The Company...
DC has unused FTC carryover from 2017 in the separate category for GC income as the result of income generated by a foreign branch. The income was foreign source general category income. In 2018 the...
A bank customer will be going to London in June to purchase 100,000 in new inventory. The current spot and futures exchange rates are as follows: Exchange Rates (Dollars/Pound) Period Rate Spot...
Calculate the income gap for a financial institution with rate-sensitive assets of $20 million and rate-sensitive liabilities of $48 million. If interest rates rise from 4% to 4.8%, what is the...
Why did new technology made it harder to enforce limitations on bank branching?
Calculate the principal direction corresponding to $\sigma_{3}=-2$ in example 5.4. Data From Example 5.4: For the stress matrix given below, determine the principal stresses. 3 1 11 [0]=102 1 2 0
The state of stress at a point in the $x y z$ coordinates is Determine the stress matrix relative to the $x^{\prime} y^{\prime} z^{\prime}$ coordinates, which is obtained by rotating the \(x y...
If $\sigma_{x x}=90 \mathrm{MPa}, \sigma_{y y}=-45 \mathrm{MPa}, \tau_{x y}=30 \mathrm{MPa}$, and $\sigma_{z z}=\tau_{x z}=\tau_{y z}=0$, compute the surface traction...

You bought a discount bond with a face value of $10,000 with a maturity of 1 year.

Question:

Expert Answer:

Present value FV11rn Here 1 rate per annum 30 ... View the full answer

Financial Markets And Institutions

Students also viewed these finance questions