Business, 03.12.2019 06:31 emmaja121003

Calculate the market price of a bond.( 5 points)
on january 1, 2020 lance co. issued five-year bonds with a face value of $1,000,000 and a stated interest rate of 12% payable semiannually on july 1 and january 1. the bonds were sold to yield 10%. present value table factors are:
present value of 1 for 5 periods at 10% .62092
present value of 1 for 5 periods at 12% .56743
present value of 1 for 10 periods at 5% .61391
present value of 1 for 10 periods at 6% .55839
present value of an ordinary annuity of 1 for 5 periods at 10% 3.79079
present value of an ordinary annuity of 1 for 5 periods at 12% 3.60478
present value of an ordinary annuity of 1 for 10 periods at 5% 7.72173
present value of an ordinary annuity of 1 for 10 periods at 6% 7.36009
calculate the issue price of the bonds.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 00:40

Gdonald was unhappy that his company did not provide good transport facilities. he found it very strenuous to drive to work on his own, and this eventually led to job dissatisfaction. hence, he recommended ways to solve this problem. according to the evln model, this information suggests that donald's main reaction to job dissatisfaction was:

Answers: 3

Answer

Business, 22.06.2019 01:00

Bond x is noncallable and has 20 years to maturity, a 7% annual coupon, and a $1,000 par value. your required return on bond x is 10%; if you buy it, you plan to hold it for 5 years. you (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 9.5%. how much should you be willing to pay for bond x today? (hint: you will need to know how much the bond will be worth at the end of 5 years.) do not round intermediate calculations. round your answer to the nearest cent.

Answers: 3

Answer

Business, 22.06.2019 02:30

When interest is compounded continuously, the amount of money increases at a rate proportional to the amount s present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) find the amount of money accrued at the end of 3 years when $4000 is deposited in a savings account drawing 5 3 4 % annual interest compounded continuously. (round your answer to the nearest cent.) $ (b) in how many years will the initial sum deposited have doubled? (round your answer to the nearest year.) years (c) use a calculator to compare the amount obtained in part (a) with the amount s = 4000 1 + 1 4 (0.0575) 3(4) that is accrued when interest is compounded quarterly. (round your answer to the nearest cent.) s = $

Answers: 1

Answer

Business, 22.06.2019 09:30

Factors like the unemployment rate, the stock market, global trade, economic policy, and the economic situation of other countries have no influence on the financial status of individuals. question 1 options: true false

Answers: 1

Answer

You know the right answer?

Calculate the market price of a bond.( 5 points)
on january 1, 2020 lance co. issued five-yea...

Questions