You have the following information regarding a bond that pays semi-annual coupon payments: Time to maturity is 12 years Coupon Rate is 6% The current price (PV) of the bond is $1,189.14 today. Compute the I/T Periodic rate on the bond that is required by the market. State as a percent without using the percent sign and round to the second decimal place. Hence, 23.628% would be written as 23.63 for the response to be correct.

2%

Explanation:

As the coupon payments are semi-annual, you need to convert the other measures to semi-annual measures as well.

Coupon rate = 6%/2 = 3% per semi annum

Coupon payment = 3% * 1,000 which is par value = $30

Time to maturity = 12 * 2 = 24 semi annual periods

Price is still the same = $1,189.14

You can use an Excel worksheet to solve for the Yield:

Number of periods = 24

Payment = $30

PV = 1,189.14

FV is par value of $1,000

Periodic rate is 0.019999

= 2%

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

answer; ///pegged exchange rate with the united states;