Even though most corporate bonds in the united states make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1000,20 years to maturity, and a coupon rate of 6.6 percent paid annually. If the yield to maturity is 8.9 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

Price of bond = $786.86

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).

Value of Bond = PV of interest + PV of RV  

The value of bond would be worked out as follows:  

Step 1  

Calculate the PV of interest payments  

Annual interest payment  

= 6.6% × 1,000× 1/2= 33

PV of interest payment = A ×(1- (1+r)^(-n))/r  

r- semi-annual yield = 8.9%/2 =  4.45 %

n- 20× 2= 40

PV of interest payment= 33 × (1-(1.0445^(-40)/0.0445 =  611.611

Step 2  

PV of redemption Value  

PV = RV × (1+r)^(-n)

PV = 1,000 × (1.0445)^(-40) = 175.25

Step 3  

Price of bond

Price of bond= 611.611 + 175.25 = 786.862

Price of bond = $786.86

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.

answer; balance sheets;