Suppose you purchased a $1,000 face value, 15-year bond one year ago. the bond has a 7.125% (annual) coupon rate - but the bonds pay coupons semiannually. you paid $974.24 for the bond last year. however, yields have increased 1%. what is the price of the bond today?
a) $991.33
b) $955.78
c) $896.14
d) $912.85
e) $917.28
f) $1,000

Explanation:

From the question, we have the followed parameters;

The Face value=1,000 United States of America Dollar($); yield to maturity= fifteen(15) years; The bond = 7.125 percent (annual) coupon rate; payment for last year = $974.24.

First thing to do is to calculate the market value after one percent extra= 1%+7.125%= 8.125%

Next, we need to calculate the present value of 14 year coupon of 71.25 USD = 573.00+ 1,000/1+ 0.8125^14

=>573.00+322.15

= 895.15

Therefore, the price of the bond today is $ 895.15.

the answer is d

brainliest! ?

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20