A bond offers an annual coupon rate of 5%, with interest paid semiannually. The bond matures in
Question:
A bond offers an annual coupon rate of 5%, with interest paid semiannually. The bond matures in seven years. At a market discount rate of 3%, the price of this bond per 100 of par value is closest to:
A. 106.60.
B. 112.54.
C. 143.90.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 33% (3 reviews)
The correct answer is B 11254 To calculate the price of a bond we need to discount all of the future ...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
A bond offers an annual coupon rate of 4%, with interest paid semiannually. The bond matures in two years. At a market discount rate of 6%, the price of this bond per 100 of par value is closest to:...
-
Instructions: Enter all answers directly in this worksheet. When finished select Save As, and save this document using your last name and student ID as the file name. Upload the data sheet to...
-
At a tender of $1 m, 182 days, a US T-bill is quoted at a price of $975,000. Calculate the discount rate and the corresponding yield unt rate (r ). The day count convention is ACT/360. money Q2)A...
-
Aggie, inc. purchased a truck at a cost of $12,000. the truck has an estimate salvage value of $2,000 and an estimated life of 5 years, or 100,000 hours of operation. The truck was purchased on...
-
Lowes Companies, a retailer of home improvement products, reported cost of goods sold of $31,729 million for the fiscal year ended January 30, 2009. It reported merchandise inventories of $7,611...
-
_________ is an example of a special systems test. (a) Unit test (b) Module test (c) Peak load test (d) Integrated test
-
What is the relationship between UCs and Modes of Operations?
-
Lenter Supply Company is a medium-sized distributor of wholesale hardware supplies in the central Ohio area. It has been a client of yours for several years and has instituted excellent internal...
-
Gail is driving home after a very busy 12-hour shift in the cardiovascular intensive care unit. She is 5 minutes from home and is looking forward to spending the evening with friends. As she rounds a...
-
A zero-coupon bond matures in 15 years. At a market discount rate of 4.5% per year and assuming annual compounding, the price of the bond per 100 of par value is closest to: A. 51.30. B. 51.67. C....
-
Consider the following two bonds that pay interest annually: At a market discount rate of 4%, the price difference between Bond A and Bond B per 100 of par value is closest to: A. 3.70. B. 3.77. C....
-
Find each of these values? a) (133 mod 23 + 261 mod 23) mod 23 b) (457 mod 23 182 mod 23) mod 23
-
Select the circumstance in which the impact on government bond yields of a new source of revenue (such as a natural resource discovery) would be largest. Explain your choice. a. Before the discovery,...
-
Interview someone you know who has worked extensively with members of other cultures. Spend an hour or two asking this person about his/her experiences. Report what this person had to say about five...
-
Arctic Blast has developed a cold treatment process for killing home-invading ants and termites. Their pesticide free process provides a highly attractive alternative to sprays and poisons. The...
-
For each of the following items, respond with one or two paragraphs. A. Discuss how you can establish and build credibility before, during, and after your presentations. B. Describe the importance of...
-
We often see ethical issues around us, and we understand ethics are important. But we are often reluctant to raise ethical issues, or sometimes we use strategies to avoid facing ethical issues. These...
-
The concept of fraud involves the legal concept of intent. What intent must be shown for there to be financial statement fraud? Would the same standards apply in other settings? In other words, is...
-
A non-charmed baryon has strangeness S = 2 and electric charge Q = 0. What are the possible values of its isospin I and of its third component I z ? What is it usually called if I = 1/2?
-
Cite a local example of psychological pricing and evaluate whether it makes sense.
-
How does a prestige pricing policy fit into a marketing mix? Would exclusive distribution be necessary?
-
Is a full-line pricing policy available only to producers? Cite local examples of full-line pricing. Why is full-line pricing important?
-
12. Challenge question: Home mortgages use amortization schedules, but the principal balance might be 10 or 100 times larger than Janet's $3500 trip. They're typically paid back over a period of 30...
-
Description: In this assignment, you will assume the role of staff auditor. Your client is the Parks and Recreation Department in Boston, Massachusetts. Your task is to perform substantive and...
-
Java Hut, a US coffee retailer, buys $10 million worth of coffee beans from Colombia. It also pays $5 million for paper cups and utilities, all produced in the U.S. It sells the coffee it produces...
Study smarter with the SolutionInn App