Question 1: Peking Duct Tape Company has outstanding a $1,000-face-value bond with a 14 percent coupon rate and 3 years remaining until final maturity. Interest payments are made semiannually. What value should you place on this bond if your nominal annual required rate of return is 14 percent?

Price Value of bond = $1,000

Explanation:

Given:

Face value = $1,000

Coupon rate = 14% yearly

Semi-annual rate = 14 / 2 = 7%

Number of year = 3

Semi-annual year = 3 x 2 = 6

Computation:

pmt(Semi-annual) = (coupon rate x face value)/2

pmt(Semi-annual) = (14% x 1000)/2

pmt(Semi-annual) = 140/2

pmt(Semi-annual) = $70

By using PV formula

=PV(rate,nper,pmt,fv,type)     , [Semi-annual]

=PV(7%,6,70,1000,0)

Price Value of bond = $1,000

match each type of restriction with one of its effects.

a. land-use laws

b. labor laws

c. banking regulations

a. controlled development of towns and cities

b. protection of young workers

c. greater financial stability

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