Business, 19.07.2021 17:20 emily965692

Fill in the missing information. Your broker faxed to you the following information about two semiannual coupon bonds that you are considering as a potential investment.â Unfortunately, your fax machine is blurring some of theâ items, and all you can read from the fax on the two different bonds is theâ following: Features IBM Coupon Bond AOL Coupon Bond
Face value (Par) $5,000 $5,000
Coupon Rate 9.5% ?
Yield to maturity 6.5% 5.5%
Years to maturity 15 30
Price ? $8,302.28

Answers: 2

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Answer from: ramosramos142

Filling the missing information:

Features IBM Coupon Bond AOL Coupon Bond

Face value (Par) $5,000 $5,000

Coupon Rate 9.5% 12.8%

Yield to maturity 6.5% 5.5%

Years to maturity 15 30

Price $6,410.40 $8,302.28

Explanation:

a) Data and Calculations:

Features IBM Coupon Bond AOL Coupon Bond

Face value (Par) $5,000 $5,000

Coupon Rate 9.5% ?

Yield to maturity 6.5% 5.5%

Years to maturity 15 30

Price ? $8,302.28

Features IBM Coupon Bond AOL Coupon Bond

Face value (Par) $5,000 $5,000

Coupon Rate 9.5% 12.8% ($640/$5,000 * 100)

Yield to maturity 6.5% 5.5%

Years to maturity 15 30

Price $6,410.40 $8,302.28

Price of IBM Coupon Bond:

N (# of periods) 15

I/Y (Interest per year) 6.5

PMT (Periodic Payment) 475

FV (Future Value) 5000

Results

PV = $6,410.40

Sum of all periodic payments$7,125.00

Total Interest$5,714.60

Coupon interest rate of AOL Bond:

N (# of periods) 30

I/Y (Interest per year) 5.5

PV (Present Value) 8302.28

FV (Future Value) 5000

Results

PMT = $640.27

Sum of all periodic payments$-19,208.06

Total Interest$5,905.78

Coupon interest rate = 12.8% ($640/$5,000 * 100)

Answer from: Quest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

Answer from: Quest

i would prefer to go with the news article for nate, its recent and updated and stores a lot of information

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