Question: A bond will pay you $45 interest at the end of every month and then the face value of the bond ($1,600) is repaid at

A bond will pay you $45 interest at the end of

A bond will pay you $45 interest at the end of every month and then the face value of the bond ($1,600) is repaid at maturity. What is the fair market value of bond today if it matures in 11 months and the market rate of return is 3.05% compounded monthly? $2,088.77$2,087.53$2,043.48$2,044.71

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 Accounting Questions!

Tiny and Tim each own half of the 100 outstanding shares of Flower Corporation. This year, Flower reported taxable income of $10,000. In addition, Flower received $20,000 of life insurance proceeds...

A $25,000 bond will pay you $1,000 interest at the end of every year until the face value of the bond ($25,000) is repaid at maturity. What is the fair market value of bond today if it matures in 8.5...

Listen A $ 4 , 0 0 0 bond will pay you $ 8 0 interest at the end of each month until the face value of the bond ( $ 4 , 0 0 0 ) is repaid at maturity. What is the fair market value of bond today if...

Please fill in the given excel file for the following bond problems 1. Given the information about Target?s bond, Symbol: TGT.IJ and CUSIP: 87612EAU0, on FINRA's website: http://www.finra.org/, what...

Question 1 : e. A couple who has lust had a daughter decides to save to pay the fees university. He can create a university fund that bears interest at a rate of 7% annual assuming the child starts...

a- A couple who has just had a daughter decides to save to pay the fees university. He can create a university fund that bears interest at a rate of 7% annual assuming the child starts university at...

Suppose a bond will pay you $595 at the end of each quarter and then the face value of the bond ($10,000) is repaid at maturity. What is the fair market value of bond today if it matures in 5 years...

The yield of a bond Michael Nguyen buys a new corporate bond for $1,000. The company issuer promises to pay the holder $45 interest on $1000 every 6 months corresponding to the face value (at par) of...

Fin 3000-version 1 $1,000 par value bonds of Castles in the Sand, Inc pay $80 in annual coupons. The bonds are A the price of the bond goes down B the price of the bond goes up C. tecopon rate...

Chapter 6 Interest Rates and Bond Valuation When a corporation or government wishes to borrow money from the public on a long-term basis, it usually does so by issuing or selling debt securities that...

Calculate the accumulated value after ten years of payments of $1000.00 made at the ond of each quarter it interest is 4% compoundod somi-annualty. $47,556,49 $48,836.51 $45,536.51 $47,836.50...

Air enters a two-stage compressor at 100 kPa and 27°C and is compressed to 625 kPa. The pressure ratio across each stage is the same, and the air is cooled to the initial temperature between the...

The van't Hoff equation relates the chemical equilibrium constant K to the enthalpy of reaction ÎHo. From the value of K in Table A.11 for the dissociation of hydrogen at 2000 K and the value...

Future Financial Considerations: Describe chipotle's likely future financial performance. Base your description on the business s current financial well - being and risk levels. This time, do not...

Events A and B are independent. Suppose event A occurs with probability 0.79 and event B occurs with probability 0.57. a. If event A or event B occurs, what is the probability that B occurs? b. If B...

v1 v 2 4 9. 8. 6. 10 At a certain college, 47% of the students are female, and 19% of the students major in civil engineering. Furthermore, 8% of the students both are female and major in civil...

1 v 2 3. 4 An urn contains 9 white balls and 7 red balls. If Juan chooses 10 balls at random from the urn, what is the probability that he will select 8 white balls and 2 red balls? Round your answer...

Question 3: Using your knowledge of chemistry and biochemistry, explain how GOx impacts the following: AH (glucose Ece E A a. b. C. d. gluconic acid) (glucose gluconic acid) (glucose gluconic acid)...

The following are the total sales figures for Olaf Ltd for the financial quarter ended 31 March 2020: Total Sales (per Statement of Comprehensive Inome) 31 January 2020 28 February 2020 31 March 2020...

1 1 ) Encouraging users to click a Like button is an example of which step in the social marketing process? A ) fan acquisition B ) brand strength C ) community D ) amplification

A company produces lightbulbs whose life follows a normal distribution, with a mean of 1,200 hours and a standard deviation of 250 hours. If we choose a lightbulb at random, what is the probability...

5.18 Let the random variable Z follow a standard normal distribution. a. The probability is 0.70 that Z is less than what number? b. The probability is 0.25 that Z is less than what number? c. The...

5.23 Anticipated consumer demand in a restaurant for free-range steaks next month can be modeled by a normal random variable with mean 1,200 pounds and standard deviation 100 pounds. a. What is the...