Question: 3. Use your BA II Plus calculator to answer the following. A bond has a face (or par or principal) amount of $50,000. The bond

3. Use your BA II Plus calculator to answer the following. A bond has a face (or par or principal) amount of $50,000. The bond was issued on January 1, 2010 and matures on December 31, 2014 (thats FIVE years from start to maturity). The bond pays interest semi-annually (your P/Y key = 2). The bond pays interest at a face (or coupon) rate of 8%. What is the price (or market value) of this bond if market rates have fallen to 6%? In your calculations, round only your answer (the market value of the bond) to the nearest dollar. Do not round any other amount in the problem.

A. $17,060


	B.	$45,945
	C.	$50,000
	D.	$52,290
	E.	$54,265

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

A sociologist surveys a sample of college students to determine whether there are differences in the attitudes and behaviors of male and female students. The survey contains 20 questions. For one...

29) 30) 31) 32) SML: The Security Market Line Bonds of the Same Company: Secured vs. Unsecured Y-axis Which one is RETURN SECURED BONDS % Both dots above represent BONDS issued by the same company....

30) Use your BA II Plus calculator to answer the following Shown ismeline summarizing the following bond BOND TIMELINE-CASH FLOWS YLAR 1 YEAR 2 YEARS YEAR Principal aka Face Amount) repaid ut...

1.Calculate the following, but before calculating the answer for each, test yourself by determining (where applicable) if each bond is trading at a premium, discount, or at par.SHOW THE CALCULATION...

I am using a BA II Plus calculator. It gives me the present value of 705,885 but I am not sure what the Present Value Interest and Principal is to get the price of the bond When Patey Pontoons issued...

Instructions: (1) For questions 1 to 3 , do not show the calculation process. Provide your final answers only for those questions. For question 4, you have to show all work. If you show only the...

I am getting my butt kicked in my online finance class bc I cannot become friends with the calculator! Please, using the provided example, can you tell me the exact sequence of buttons to press on my...

AAA Health, Inc. ( NYSE: A 3 H ) is evaluating a new product, a vitamin C / fish oil blended energy drink. As an assistant director of the capital budgeting division of AAA Health, you are...

Case AAA Health, Inc. ( NYSE: A 3 H ) is evaluating a new product, a vitamin C / fish oil blended energy drink. As an assistant director of the capital budgeting division of AAA Health, you are...

Hi, I was given this sheet by my professor and I am having trouble with certain problems. I have solved problem 1, but need help specifically with #2, #3, #4, #7, #10, #12 ...further more, I need...

Instructions: (1) For questions 1 to 3, do not show the calculation process. Provide your final answers only for those questions. For question 4, you have to show all work. If you show only the...

Let Y represent the profit (or 1hr59mins X certain company X years after 1960. Based on the data shown below, a statistician calculates a linear model Y = 2.89X + 15.82. xy 2 3 4 5 6 7 8 9 10 19.96...

Donahue Corporation is authorized by its charter from the state of Illinois to issue 750 shares of preferred stock with a 7 percent dividend rate and a par value of $50 per share and 22,000 shares of...

5.87 Imperfections in computer circuit boards and computer chips lend themselves to statistical treatment. For a particular type of board, the probability of a diode failure is 0.02 and the board...

What is a business objective? Question 8 Answer a . The main objective of any business is to earn a profit b . The main objective of any business is to make an impact c . The main objective of any...

=+6. How does a firm avoid the perception that its CSR report is greenwash?

=+Was the judge correct to rule the way he did? If the case came before the court today, would the outcome be any different?

=+1. What is your opinion of the verdict delivered in Dodge v. Ford Motor Company?