A 15-year bond with a 5.5% coupon and a $1,000 par value is currently priced at $940.
a. If the current market interest rate is 6.5%. Should you buy the bond? Why or why not?
b. Assuming you buy and hold this bond for 5 years. What price must you sell the bond for if you
want to earn a 7% rate of return on this investment?

Answers

Answer 1

A) If the current market interest rate is 6.5%, you should not buy the bond because the present value of the bond is $905.97, which is less than the current price of $940.

B) Assuming you buy and hold this bond for 5 years, the price you must sell the bond to earn a 7% rate of return on this investment is $938.50.

How is the price of bonds determined?

The price of a bond can be determined by calculating the present value of the cash flows till maturity through discounting.

The present value can be computed using the present value formula or table.  It can also be determined using an online finance calculator as follows:

Data and Calculations:

a. If the current market interest rate is 6.5%. Should you buy the bond? Why or why not?

N (# of periods) = 15 years

I/Y (Interest per year) = 6.5%

Coupon interest rate = 5.5%

PMT (Periodic Payment) = $55

FV (Future Value) = $1,000

Results:

PV = $905.97

Sum of all periodic payments = $825 ($55 x 15)

Total Interest = $919.03

b. Assuming you buy and hold this bond for 5 years. What price must you sell the bond for if you want to earn a 7% rate of return on this investment?

N (# of periods) = 5 years

I/Y (Desired Interest per year) = 7%

Coupon interest rate = 5.5%

PMT (Periodic Payment) = $55

FV (Future Value) = $1,000

Results:

PV = $938.50

Sum of all periodic payments = $275 ($55 x 5)

Total Interest = $336.50

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Related Questions

An electric utility worker wants to anchor a guy wire from the top of a 13.2-foot utility pole to a spot that is 5.5 feet from the base of the pole on level ground. How long does the guy wire need to be?

Answers

Answer:

a^2+b^2=c^2

Step-by-step explanation:

13.2^2+5.5^2=c^2

204.49=c^2

sqrt(204.49)=14.3

In a quadrilateral OABC, D is the midpoint of BC and E is the point on AD such that AE : ED=2: 1. Given that OA = a, OB = b and OC = c, express OD and OE in terms of a, b and c.​

Answers

Answer:

Step-by-step explanation:

CB=OB-OC;

CD=CB/2=(OB-OC)/2=(b-c)/2;

OD=OC+CD=c+(b-c)/2=c/2+b/2;

AD=OD-OA=c/2+b/2-a;

AE=2/3*AD=2/3*(c/2+b/2-a)=c/3+b/3-2*a/3;

OE=OA+AE=a+c/3+b/3-2*a/3=a/3+b/3+c/3;

-------------------------------------------------------------------------------------------------

OD=c/2+b/2;

OE=a/3+b/3+c/3;

The value of OE = (a+ b+ c)/3 and OD = (b + c)/2.

In quadrilateral OABC, we are given that D is the midpoint of BC,

and E is a point on AD such that AE : ED = 2 : 1.

Also, OA = a, OB = b and OC = c

Now, By the Midpoint Theorem, we also have

OD = (1/2)OB + (1/2)OC.

OD = (1/2)(OB + OC)

OD = (1/2)(b + c)

OD = (b + c)/2.

and, CD= (OB- OC)/2 = (b-c)/2

Now, AD=OD-OA= (c+b)/2 - a

and, AE=2/3 x AD

= 2/3 x (c+ b)/2 - a

= (c + b - 2a)/3

Then, OE = OA + AE

= a + (c + b - 2a)/3

= (a+ b+ c)/3

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Wendy works at a kite shop. Yesterday she made 2 large kites and one small kite, using 16 square yards of nylon fabric. The day before, she used 9 square yards of nylon fabric to make 1 large kite and 1 small kite. How much nylon does Wendy need to make each size kite?

Write a system of equations to describe the situation and solve using elimination. (use x for a large kit and y for a small kite)

Answers

Answer:

x=7 and y =2.

2x+y = 16

x+y = 9

What is the value of 0.6–0.3? Write your answer as a fraction in lowest terms.

Answers

Answer: 3/10

Step-by-step explanation:

Give me feedback if I am wrong.

Answer:

0.6-0.3=0.3. convert to fraction=1/3

If Jose earned 145.60 for 7 hours, how many hours would he have to work to earn $83.20?

Answers

Answer:

4 hours

Step-by-step explanation:

Each hour: 145.60/7 = 20.80

83.20/20.80 = 4

Help will be much appreciated...

Answers

Answer:

conclusion statement four sentences about you and exothermic heat was realised or absorbed it was changed beacsue positive 9r negative.

The table shows Avery’s net worth statement.

Net Worth Statement. Item; Value. Bank accounts; $3,900; Car (current value); question mark; Credit card debt; negative $2,950; Real estate; $37,425; Student loans; negative $1,700; Investments; $4,600.

Avery’s net worth is $53,755. Based on the information in the table, what is the current value of Avery’s car?

Answers

The current value of Avery’s car is $12,480.

Current value

First step is to calculate the Net Worth

Bank accounts    $3,900

Credit card debt ($2,950)

Real estate         $37,425

Student loans    ($1,700)

Investments        $4,600

Net worth           $41,275

Second step is to calculate the current value of Avery’s car

Current value=$53,755-$41,275

Current value=$12,480

Inconclusion the current value of Avery’s car is $12,480.

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21​% of U.S. adults say they are more likely to make purchases during a sales tax holiday. You randomly select 10 adults. Find the probability that the number of adults who say they are more likely to make purchases during a sales tax holiday is​ (a) exactly​ two, (b) more than​ two, and​ (c) between two and​ five, inclusive.

Answers

Answer:

[tex]\left(a\right)\ 21.066\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \left(b\right)\ 66.872\\ \left(c\right)\ 81.567[/tex]

Step-by-step explanation:

[tex]\left(a\right)\ P\left(2\right)=C^{\begin{matrix}2\\10\\\end{matrix}}\bullet(32)^2\bullet(1-32)^{10-2}\\ =C^{\begin{matrix}2\\10\\\end{matrix}}\bullet(32)^2\bullet(68)^8=0.21066=21.066[/tex] [tex]percent[/tex]

[tex]cb)\ P(x > 2)=P(x\le2)=1-(P(x=0)+P(x=1)+P(x=2))\\ =1-C^{\begin{matrix}0\\10\\\end{matrix}}(0.32)degrees(0.68)^{10}-C^{\begin{matrix}1\\10\\\end{matrix}}(0.32)\prime(0.68)^9-C^{\begin{matrix}1\\0\\\end{matrix}}(008)(66)^9\\ =1-0.02114-0.09948-0.21066\\ =0.66872=66.872\\[/tex]

[tex](C)\ \ \ \ \ P(2\preccurlyeq[/tex] [tex]5)=P(2)+P(3)+P(4)+P(5)5)=P(2)+P(3)+P(4)+P(5)[/tex]

[tex]=C^{\begin{matrix}2\\10\\\end{matrix}}(0.32)^{)^2}\bullet(0.68)^3+C^{\begin{matrix}3\\10\\\end{matrix}}(0.32)^3\bullet(0.68)^7+C^{\begin{matrix}4\\10\\\end{matrix}}(0.32)^4\bullet(0.68)^6+C^{\begin{matrix}5\\10\\\end{matrix}}\bullet(0.32)^5\bullet(0.65)^5)[/tex]

[tex]=0.2186+0.26436+0.21771+0.12294\\ =0.81567=81.567 percent[/tex]

[tex](binomial\ distribution)[/tex]

I hope this helps you

:)

Each equation below is followed by several stories.
Select all of the stories that can be represented by the equation.
If none of the stories can be represented, select "None of the above".

(a)x+11=44

Answers

Forming Algebraic Expressions From a Story

Typically, there are keywords in the story that tell us what operations we need to use.

For instance, in terms of age:

"Younger" or "older" connotes to subtraction from the age of the older person. It can also connote to the addition to the age of the younger person."Years ago" typically connotes to the subtraction of x years from the person's current age."More years" typically connotes to the addition of x years to the person's current age.

Solving the Question

Let's take a look at our first option.

Yousif is x years old. Rana is 44 years older than Yousif. Rana is 11 years old.

Firstly, this option doesn't even make sense. How can Rana be 11 years old but also 44 years older than Yousif?

Let's look at our second option.

Rana is x years old. in 11 more years, she will be 44 years old.

Immediately, we see "11 more years". This means that we will be adding 11 to Rana's current age, which is x:

[tex]x+11[/tex]

This expression above is equal to 44, since the question tells us that Rana will be 44 years old in 11 years:

[tex]x+11=44[/tex]

This is our final expression. It is the same as the given expression in the question.

Answer

Rana is x years old. in 11 more years, she will be 44 years old.

Find the value of x, y and z. ​

Answers

Answer:

Step-by-step explanation:

How can you calculate the area of the circle if know the circle’s circumference.

Answers

Answer:

dont cheat

Step-by-step explanation:

a box of cookies weighing 4kg was divided into 6 equal shares.

Answers

Answer:

0.67

Step-by-step explanation:

that is 4 divided by 6

your answer is 0.6666666

it's a recurring decimal

or 0.67

For which equations is x = 9 a possible solution? Check all that apply.

|x| = 9
–|x| = 9
–|–x| = 9
–|–x| = –9
|x| = –9
|–x| = 9
|–x| = –9

Answers

Answer:

|x|=9

Step-by-step explanation:

Absolute value is |x|=9

Translate the triangle.
Anyways but I’ve been on this question for about 20 minutes because I can’t find the answer anywhere.

Answers

Answer:

A: (2,2) B: (3,-1) C: (-1,0)

Step-by-step explanation:

Change the coordinates of each point using the given translation. So 2 left 3 up.

Question 7 of 10
What is the solution to this equation?
3(4x+3) = 2x - 5(3 - x) + 2
4
O A. x=-
15
10
O B. x=-22
O
5
O x-
O c. x - 22
15
O x
O D. x = -1
5

Answers

Answer:

Option B

Step-by-step explanation:

Given Equation :

[tex] \qquad \sf \dashrightarrow \: 3(4x+3) = 2x - 5(3 - x) + 2[/tex]

Using distribute property:

[tex]\qquad \sf \dashrightarrow \: 12x + 9 = 2x - 15 + 5x + 2[/tex]

Adding the like terms we get :

[tex]\qquad \sf \dashrightarrow \: 12x + 9 = 2x + 5x - 15 + 2[/tex]

[tex]\qquad \sf \dashrightarrow \: 12x + 9 = 7x - 13[/tex]

Transposing the variables on the right side and constant terms on the left side :

[tex]\qquad \sf \dashrightarrow \: 12x - 7x = - 13 - 9[/tex]

[tex]\qquad \sf \dashrightarrow \: 5x = - 22[/tex]

Dividing both sides by 5 :

[tex]\qquad \sf \dashrightarrow \: \dfrac{5x}{5} = \dfrac{ - 22}{5} [/tex]

[tex]\qquad \bf \dashrightarrow \: x = \dfrac{ - 22}{5} [/tex]

Can you help with this question I will give you 10 points

Answers

Answer:

The elevation of University Peak could be 14,464, which in between the two mountains.

Answer:

It's shorter than Mt. Massive but it's shorter than Mt. Alverstone.

The number between 14,500 and 14,428 is 14464, that would be a great guess

a rectangular swimming pool has an area of x²-6x-16, what expression could represent the length and width of the pool

Answers

Answer:

the answer is A im not sure so check with another person.

Step-by-step explanation:

if you divide 10 divided by 2 it gives you 5 and then subtract it by 2.2 = 2.8

there goes your answer.

here a subtraction problem that has been solved incorrectly 21-9=11 choose the addition sentence that check this subtraction problem here the choices are 21+9=30 11+9=20 11+21=32 which one is correct​

Answers

Answer:

Answer:

11+ 9 = 20

Step-by-step explanation:

=> 21-9=11

21 - 9 equals to 11 is actually a wrong answer

So in order to find the subtraction problem that will help us truly know whether the equation is wrong

=> 11+ 9 = 20

OR THE SECOND EQUATION IS

=> 21 - 11 = 10

RJ has two loans. Loan H has a nominal rate of 5.68%, compounded daily. Loan I has a nominal rate of 6.33%, compounded monthly. Which loan's effective rate had the greater increase, relative to its nominal rate, and how much greater is its increase than that of the other loan?
a.
Loan I’s increase was 0.03 percentage points greater than Loan H’s.
b.
Loan I’s increase was 0.68 percentage points greater than Loan H’s.
c.
Loan H’s increase was 0.16 percentage points greater than Loan I’s.
d.
Loan H’s increase was 0.49 percentage points greater than Loan I’s.

Answers

Answer:

The correct answer for this question is:

The loan's effective rate that had the greater increase, relative to its nominal rate, and how much greater is its increase than that of the other loan is that 'loan H’s increase was 0.16 percentage points greater than Loan I’s.

Step-by-step explanation:

Answer:

A: Loan I’s increase was 0.03 percentage points greater than Loan H’s.


Use trigonometric rates to find the missing angle.

Answers

Answer: 61.93 degrees
Because the two sides are the hypotenuse and adjacent of the angle, use cosine to figure out x! cosine is CAH (cosine= adjacent/hypotenuse) so you would do cosx-1=8/17 on the calculator which is around 62 degrees.

Answer:

Step-by-step explanation:

HELPP QUICK PLEASE please

Answers

Hi! I hope you're enjoying your day!

Please remember that an arithmetic sequence is a sequence where we use either addition or subtraction to get to the next term.

Now, let's find an arithmetic sequence here.

Is it Option A?

Remember: It should have a common difference of 2.

Which means we either add or subtract 2 to get to the next term.

Well, it seems like Option A is right.

Let's check the other options.

Is Option B right? Nope.

Here's why.

Hint: Pay attention to the signs.

We have

1, -3, 5, -7, 9...

So Option B is wrong.

Option C is correct, because we subtract 2 each time.

Option D is wrong, because we multiply by 2 each time.

Hence, the right options are

[tex]\boxed{\boxed{\bold{Options~A~and~C.}}}[/tex]

Hope everything is clear.

If you have any questions, please comment.

#LearningIsFun

[tex]\rule{200}{2}[/tex]

Shoes sold at the Shoe Express are discounted 25% off the original price. If a pair of shoes originally cost $46, calculate the sale price of the shoes

Answers

Answer:

$34.50

Step-by-step explanation:

$46*.25 = $11.50

$46 - 11.50 = $34.50

Solution:

We know that:

Discounted price: Original price - (Original price × Discount)Original cost of a pair of shoes: $46Discount: 25%

This means that:

Sale price of a pair of shoes: 46 - (46 × 25%)

Step-1: Convert "25%" into a fraction.

25% = 25/100 = 1/4

Step-2: Find the discounted price.

Sale price of a pair of shoes: 46 - (46 × 1/4)Sale price of a pair of shoes: 46 - (23/2)Sale price of a pair of shoes: 46 - 11.5Sale price of a pair of shoes: $34.5

The function H
gives the height, above the ground, of a point on a spinning wheel. The function A gives the height of a point on a different spinning wheel and is defined by
A(t)=1.2H(3t). Here, t is time in seconds since the wheels started moving. How does the spinning wheel modeled by function A compare to the wheel for H
? Explain how you know.

Answers

The expression [tex]A(t) = 1.2\cdot H(3t)[/tex] multiplies the amplitude of [tex]H(3t)[/tex] by 1.2.

Functional analysis for the model of the height of the wheel

The model of the height is represented by the following sinusoidal model:

[tex]H(3t) = D \cdot \sin [B(3t)+E][/tex] (1)

Where:

[tex]D[/tex] - Amplitude[tex]B[/tex] - Angular frequency[tex]E[/tex] - Phase angle

Then, the expression [tex]A(t) = 1.2\cdot H(3t)[/tex] multiplies the amplitude of [tex]H(3t)[/tex] by 1.2. [tex]\blacksquare[/tex]

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Riley set up a snack table for her dog's birthday party. She invited all the neighborhood dogs
-and their owners! For the dogs, she filled small toy balls with peanut butter. The balls have
a radius of 1.75 inches. What is the volume of each ball?
Use a = 3.14 and round your answer to the nearest whole number.
cubic inches

For her neighbors, Riley filled mini cone-shaped bags with popcorn. Riley notices that the
bags have the same radius as the balls, but a volume of 44 cubic inches. What is the height
of each bag?
Use na 3.14 and round your answer to the nearest whole number.
inches

Answers

The volume of each ball is: 22.45 in.³.

The height of the cone-shaped bag = 14 inches.

What is the Volume of a Sphere and a Cone?Volume of a sphere = 4/3πr³Volume of a cone = 1/3πr²h

Volume of each ball = 4/3πr³ = 4/3π(1.75³) = 22.45 in.³.

Radius (r) of the cone-shaped bag = 1.75

Height (h) = ?

Volume of the cone-shaped bag = 44 cubic inches

44 = 1/3(3.14)(1.75²)h

44 = 3.2h

44/3.2 = h

h ≈ 14 inches.

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What is the equation of the line that passes through the point (2,3) and has a slope that is undefined?

Answers

Answer:

x=2

Step-by-step explanation:

An undefined slope is the slope of a vertical line.

line through (2,3) is y=mx+b

Answer: x=2


If we divide the polynomial P by the factor x - c and we
obtain the equation P(x) = (x – c)Q(x) + R(x), then we say
that x - c is the divisor, Q(x) is the
and R(x) is
the

Answers

Hello

Step-by-step explanation:

hello I'm Filipino people

Which equation can be used to represent three minus the difference of a number and one equals one-haf of the
difference of three times the same number and four?
e (1-0) -3 4 -32)
e 3-1-n) = 4-3)
O (2-1)-3= {(3m-4
O 3-(1-1)=(37-4

Answers

Answer:

3-(1-1)=(37-4

Step-by-step explanation:

Answer:

3-(1-1)=(37-4)

Step-by-step explanation:

step by step explanation

44% of the doctors in a hospital are females and the number of male doctors is 62. Find the total number doctors in the hospital.

don't scam, ​

Answers

is this correct?

hope you liked it!

What is 49 times 69 equal to?

Answers

Answer:

3381 is the answer

Answer:

3,381

Step-by-step explanation:

hope this helps

Please look at the picture and answer it. Thank you.

Answers

Answer:

not clear.

please send another..

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