Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 9 percent, has a YTM of 7 percent, and has 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 7 percent, has a YTM of 9 percent, and also has 13 years to maturity. The bonds have a $1,000 par value.



What is the price of each bond today? If interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In three years? In eight years? In 12 years? In 13 years?

Answers

Answer 1

Answer:

Bond X

current market price:

PV of face value = $1,000 / (1 + 3.5%)²⁶ = $

PV of coupon payments = $45 x 16.89035 (PV annuity factor, 3.5%, 26 periods) = $760.07

current market price = $408.84 + $760.07 = $1,168.91

price in 1 year:

PV of face value = $1,000 / (1 + 3.5%)²⁴ = $437.96

PV of coupon payments = $45 x 16.05837 (PV annuity factor, 3.5%, 24 periods) = $722.63

market price = $437.96 + $722.63 = $1,160.59

price in 3 years:

PV of face value = $1,000 / (1 + 3.5%)²⁰ = $502.57

PV of coupon payments = $45 x 14.2124 (PV annuity factor, 3.5%, 20 periods) = $639.56

market price = $502.57+ $639.56 = $1,142.13

price in 8 years:

PV of face value = $1,000 / (1 + 3.5%)¹⁰ = $708.92

PV of coupon payments = $45 x 8.31661 (PV annuity factor, 3.5%, 10 periods) = $374.25

market price = $708.92 + $374.25 = $1,083.17

price in 12 years:

PV of face value = $1,000 / (1 + 3.5%)² = $933.51

PV of coupon payments = $45 x 1.89969 (PV annuity factor, 3.5%, 2 periods) = $85.49

market price = $933.51 + $85.49 = $1,019

price in 13 years:

market price = $1,000 + $45 = $1,045

Bond Y

current market price:

PV of face value = $1,000 / (1 + 4.5%)²⁶ = $318.40

PV of coupon payments = $35 x 15.14661 (PV annuity factor, 4.5%, 26 periods) = $530.13

current market price = $318.40 + $530.13 = $847.53

price in 1 year:

PV of face value = $1,000 / (1 + 4.5%)²⁴ = $347.70

PV of coupon payments = $35 x 14.49548 (PV annuity factor, 4.5%, 24 periods) = $507.34

market price = $347.70 + $507.34 = $855.04

price in 3 years:

PV of face value = $1,000 / (1 + 4.5%)²⁰ = $414.64

PV of coupon payments = $35 x 13.00794 (PV annuity factor, 4.5%, 20 periods) = $455.28

market price = $414.64+ $455.28 = $869.92

price in 8 years:

PV of face value = $1,000 / (1 + 4.5%)¹⁰ = $643.93

PV of coupon payments = $35 x 7.91272 (PV annuity factor, 4.5%, 10 periods) = $276.95

market price = $643.93 + $276.95 = $920.88

price in 12 years:

PV of face value = $1,000 / (1 + 4.5%)² = $915.73

PV of coupon payments = $35 x 1.87267 (PV annuity factor, 4.5%, 2 periods) = $65.54

market price = $915.73 + $65.54 = $981.27

price in 13 years:

market price = $1,000 + $35 = $1,035


Related Questions

Can you please help me

Answers

Answer:

b

Step-by-step explanation:

Whats 27.16 - 3.1 x 1.4 evaluated?
PLEASE HELP

Answers

Answer:

22.82

Step-by-step explanation:

can u plz mark me as brainliest??

Answer:

22.82

Step-by-step explanation:

3.1*1.4 = 4.34

27.16-4.34 = 22.82

[edited, I messed up the order of operations before, sorry]

The figure shows the design of a greenhouse with a rectangular floor. The front and back sides of the greenhouse are semicircles with a diameter of w and the roof is half a cylinder. Consider greenhouse A with floor dimensions w=16 feet and l =18 feet.
A concrete slab 4 inches deep will be poured for the floor of greenhouse A. How many cubic feet of concrete are needed for the floor?

Answers

9514 1404 393

Answer:

  96 cubic feet

Step-by-step explanation:

A volume that is 16 ft by 18 ft by 1/3 ft will be ...

  V = LWH

  V = (16 ft)(18 ft)(1/3 ft) = 96 ft³

96 cubic feet of concrete are needed.

Use rounding to estimate the product of 5,555 and 4,444 round both numbers to the nearest thousand to find answer

Answers

Step-by-step explanation:

Given that the first number is

5,555 and

the second number is 4,444

the product of 5,555 and4,444= 24686420

to the nearest thousand 5,555= 6000

to the nearest thousand 4,444= 5000

Therefore the product of 6000 and 5000 is

=6000x5000

=30000000

What is 13 5/8 - 3 2/3?

Answers

Your answer is 9 23/24 and if your able to simply that’s all

PLEASE HELP ASAP
IT AN EMERGENCY



Answers

Answer: E) Not enough information

We're given two pairs of congruent sides, and a pair of congruent angles. The angles are not between the two congruent sides. So we don't have enough information to know if the triangles are congruent or not. SSA is not a valid congruence theorem. This is because there are some cases where two triangles are possible leading to ambiguity.

If the marked angles were between the tickmarked sides, then we could use SAS.

Jamal buys 33 bolts that cost $0.38 each,hich equation represents the best estimate for the total cost of all of the bolts

Answers

Answer:

12.54

Step-by-step explanation:

A moving truck rental company charges $26.95 to rent a truck, plus $0.8 per mile. Suppose the function C(d)gives the total cost of renting the truck for one day if you drive 40 miles.Give the formula for C(d). Make sure to give the complete formula as an equation.CorrectGive the total rental cost if you drive the truck 40 miles. Give the function notation in the first box, the answer in the second box, and choose the correct units from the third box.Correct

Answers

the function would be C(d)=26.95+0.8x where x= total # of miles, so if the truck is driven for 40 miles the function would be C(d)=26.95+0.8(40) which is $58.95

There are 3 cats in the room and no other creatures. Each cat has 2 ears, 4 paws, and 1 tail.

Answers

Answer:

ok soooo whats the question like bruhhhhhh i here to anwser now tell me the question

Step-by-step explanation:

You come from a large, dysfunctional family. You learn of this year’s upcoming reunion, and dread the very thought of being around those people for any length of time. However, you’ve been intrigued by your introductory statistics course, and decide you will have some fun with the reunion by using it as an opportunity to study your family. As a preliminary project, you want to keep track of how many times each family member verbally assaults another person throughout the first 24 hours.
After 24 hours, you review your notes:
Family Member # Verbal Assaults
Stew (Dad) 5
Marge (Mom) 7
Betsy 18
Fred 11
Gracie 4
Jorge 10
Kim 5
Ferdinand 15
Hal 6
You 19
Find the mean, median, and mode of your distribution:
1. Mean
2. Median
3. Mode
4. Which measure of central tendency do you think is most appropriate for this dataser? Why?
5. What is the range of your dataset? Show how you figured it out.
6. Define, as specifically as necessary, the population in which you are interested for this research. In other words, how do you decide whether a person would be appropriate to include in your study?
7-9. Find the standard deviation for the data in the table on the first page. Showing your work is how you earn points for this part
10. What is the standard deviation of your dataset?

Answers

Answer:

Explained below.

Step-by-step explanation:

The data provided is for the number of times each family member verbally assaults another person throughout the first 24 hours.

Use Minitab to compute the descriptive statistics.

Go to Stat → Basic Statistics → Display Basic Statistics

A dialog box will open.

Select the variable.

Select 'Statistics'.  

Another dialog box will open.

Select the statistics required.

Press OK.

Select "Graphs'.

Select Histogram.

Press OK

The output is attached below.

(1)

The mean of the data is, Mean = 10.

(2)

The median of the data is, Median = 8.50.

(3)

The mode of the data is, Mode = 5.

(4)

The inequality statement for the mean, median and mode is:

Mean > Median > Mode

A distribution is known as to be skewed to the right, or positively skewed, when maximum of the data are collected on the left of the histogram of the distribution.

Also if the Mean > Median > Mode then the distribution is skewed to the right.

For a skewed distribution the best of central tendency is the median.

So, the measure of central tendency that is most appropriate for this dataset is, Median = 8.50.

(5)

The range of the data set is:

Range = Maximum - Minimum

          = 19 - 4

          = 15

Thus, the range is 15.  

(6)

The population of interest is the number of times the family members verbally assaults another person throughout the first 24 hours.

(7-10)

Consider the Minitab output.

The standard deviation of the data set is, SD = 5.60.  

c/4=16 pls answer quick

Answers

Answer:

c = 64

Step-by-step explanation:

Multiply each side by 4 to cancel out the 4 under c. It should now look like this: c = 64

I hope this helps!

A salesperson at a company sold 6,903,435 dollars of hardware for the year, a figure that represents the eighth decile of sales performance at the company. What can you conclude about their performance.

Answers

Answer:

The performance is good

Step-by-step explanation:

80% of the sales peoples sold less than this...

14 teachers after you were surveyed about the music listening habits. Here is their data in HOURS:
0,0,0.5,0.5,0.5,1,1,1,1,1,3,4,6,8.5
Use a calculator to calculate the following standard deviation of this data. What is the value? The standard deviation of U is 1.9 hours. Compare the standard deviation you calculated for teachers with that of students. What does that mean about the distribution for teachers vs. students? ​

Answers

Using a calculator, you should get a sample standard deviation of approximately 2.5 hours

If you want to find the standard deviation by hand, you need to do the following steps

Find the mean muSubtract each data value from the mean to get (x-mu)Square each result from step 2, so we now have (x-mu)^2Add up each square from the previous stepDivide that result over n-1. In this case n = 14 is the sample size. This computes the sample variance.Finally, apply the square root to get the sample standard deviation.

The teacher data set has a sample standard deviation of roughly 2.5 hours; compare this with the sample standard deviation of the students 1.9 hours, and we see that the teacher data set is more spread out. The larger the standard deviation is, the more spread out the data set will be.

Find the elapsed time between 10:21 a.m. and 5:43 p.m.

6 hours, 4 minutes
7 hours, 22 minutes
5 hours, 22 minutes
16 hours, 4 minutes

Answers

Answer:

7 hours, 22 minutes

Step-by-step explanation:

17:00 (5:00) - 10:00 = 7 hours apart

43 - 21 = 22 minutes

7 hours, 22 minutes hopefully this helps you and have a good day :)

Compute a 99% confidence interval for the mean weight of toxic substance per gram of mold culture. State the assumption you make about the population.

Answers

Complete Question

The complete question is shown on the first uploaded image

Answer:

The  99% confidence interval is  [tex]2.4309 <  \mu <   4.9328[/tex]

Step-by-step explanation:

From the question we are told that

   The data is   3, 2,5, 3, 2, 6, 5,4.5, 3, 3, and 4

    The sample size is  n  =  11

Generally the sample mean is mathematically represented as

     [tex]\= x  =  \frac{\sum x_i}{n}[/tex]

=>  [tex]\= x  =  \frac{3+ 2+5+ \cdots +4 }{11}[/tex]

=>  [tex]\= x  =  3.6818 [/tex]

Generally the sample standard deviation  is mathematically represented as

    [tex]\sigma  =  \sqrt{\frac{\sum [ x_i - \= x ] }{n} }[/tex]

=>  [tex]\sigma  =  \sqrt{\frac{[ 3 - 3.6818 ]^2 +[ 2 - 3.6818 ]^2 + \cdots + [ 4 - 3.6818 ]^2   }{11} }[/tex]

=>  [tex]\sigma  =  1.3091[/tex]

Given that the confidence interval is 99% then the level of significance is mathematically represented as

         [tex]\alpha= (100 - 99) \%[/tex]

=>      [tex]\alpha= 0.01[/tex]

Given  that the sample size is small we will making use of t distribution table  

Generally from the t distribution table the critical value  of   at a degree of freedom of  is  

   [tex]t_{\frac{\alpha }{2} , 10 } =3.16927267   [/tex]

Generally the margin of error is mathematically represented as  

      [tex]E =  3.16927267  *  \frac{1.3091 }{\sqrt{11} }[/tex]

     [tex]E = 1.251[/tex]

Generally 99% confidence interval is mathematically represented as  

      [tex]3.6818 -1.251 <  p < 3.6818 + 1.251 [/tex]

=>    [tex]2.4309 <  \mu <   4.9328[/tex]

Round 24.9652 to
1 decimal Place​

Answers

Answer:

2.5 one decimal rounding off means to make it to one decimal place.the no is 24.9652 if you want to round of then you have to put decimal after 2 only then it will be one decimal place .this is because when we see a number after the point greater than 5 then we add 1 to the right side .now if we add 1 to the right side of 24.9652 by rounding off and making it to one decimal place then it will be 2.5.

Question a) Compare the Variability of Expenditure of Families in Two Towns given as follows: Number of families Expenditure (Rupees) 21-30 31-40 41-50 51-60 61-70 71-80 81-90 Town A 3 61 132 153 140 51 2 Town B 2 14 20 27 28 7 2

Answers

Answer:

Kindly check explanation

Step-by-step explanation:

Given the data:

Number of families __________Expenditure

______midpoint (x) ____Town A __Town B

21-30 __25.5____________3 _______2

31-40 __35.5____________61 ______14

41-50 __45.5___________132 _____ 20

51-60 __55.5__________ 153 ______27

61-70 __65.5__________ 140 ______ 28

71-80 __75.5___________ 51 _______ 7

81-90 __85.5___________ 2 _______ 2

The variability is the variance and standard deviation :

The variance (s):

√Σ(x - m)²/Σf(x)

Town A:

m = Σ(X * f(x)) / Σf ; Σf = 542

Σ x * f(x) = (25.5*3) + (35.5*61) + (45.5*132) + (55.5*153) + (65.5*140) + (75.5*51) + (85.5*2)

= 29931 / 542

= 55. 22

Σf(x - m)² / Σf - 1 = [3(25.5-55.22)^2 + 61(35.5-55.22)^2 + 132(45.5-55.22)^2 + 153(55.5-55.22)^2 + 140(65.5-55.22)^2 + 51(75.5-55.22)^2 + 2(85.5-55.22)^2] / 541

= 76458. 4928 / 541

Variance = 141.32808

Standard deviation = √variance

Standard deviation = √141.32808

Standard deviation = 11.89

TOWN B:

m = Σ(X * f(x)) / Σf ; Σf = 100

Σ x * f(x) = (25.5*2) + (35.5*14) + (45.5*20) + (55.5*27) + (65.5*28) + (75.5*7) + (85.5*2)

= 5490 / 100

= 54.90

Variance :

Σf(x - m)² / Σf - 1 = [2(25.5-54.90)^2 + 14(35.5-54.90)^2 + 20(45.5-54.90)^2 + 27(55.5-54.90)^2 + 28(65.5-54.90)^2 + 7(75.5-54.90)^2 + 2(85.5-54.90)^2] / 99

= 16764 / 99

= 169.33

Standard deviation = √variance

Standard deviation = √169.3333

Standard deviation = 13.013

From the result above, Town A has lesser variability than Town B due to the slightly lower variance and standard deviation values.

Please help! What’s the answer to these questions

Answers

Answer: 1. 6,341

2. 634.1

3. 63.41

Step-by-step explanation:

What is
41/6
as a mixed number in simplest form?
Enter your answer in the box.

Answers

Answer:

6 1/6

Step-by-step explanation:

six goes into 42 seven times that leaves you with one number so it can go in six times evenly and that leaves you with 1/6

The answer is as a mixed number is 6 1/6

How far will a car driving at 55 miles per hour travel in 24 minutes? A 2.29 miles B 22 miles C 66 miles D 1,320 miles

Answers

A because you have to divide 55 by 24 which gives you 2.29166667 but estimating it will give 2.29

Answer two questions about Equations AAA and BBB:

\begin{aligned} A.&&5x&=3x \\\\ B.&&5&=3 \end{aligned}

A.

B.







5x

5




=3x

=3




1) How can we get Equation BBB from Equation AAA?

Choose 1 answer:

Choose 1 answer:


(Choice A)

A

Add/subtract the same quantity to/from both sides


(Choice B)

B

Add/subtract a quantity to/from only one side


(Choice C)

C

Multiply/divide both sides by the same non-zero constant


(Choice D)

D

Multiply/divide both sides by the same variable expression

2) Based on the previous answer, are the equations equivalent? In other words, do they have the same solution?

Choose 1 answer:

Choose 1 answer:


(Choice A)

A

Yes


(Choice B)

B

No

Answers

Answer:

1). A. Add/subtract a quantity to/from only one side  

2) B. No

Step-by-step explanation:

Given equation A

5x-2+x = x-4

Given equation B

5x+x = x-4

We can see that the difference between equation A and B is the 2 that subtracted from the left hand sides of the equation A. All other functions and constants remains the same.

For us to be able to get equation B from A, we need to simply add 2 to the left hand side of equation A to cancel out the -2 that is there as shown:

From equation A:

[tex]5x-2+x = x-4[/tex]

Add 2 to the left hand side of the equation

[tex]5x-2+x+2 = x-4[/tex]

Simplify

[tex]5x-2+2+x = x-4\\5x+0+x = x-4\\5x+x = x-4[/tex]

We can see that the resulting function gives the equation B

Hence the option B is correct i.e Add/subtract a quantity to/from only one side  

Let us find the solution to equation A and B

For equation A:

[tex]5x-2+x = x-4\\5x+x-2 = x-4\\6x-2 = x-4\\6x-x = -4+2\\5x = -2\\x = -2/5[/tex]

For equation B:

[tex]5x+x = x-4\\5x+x-x = 4\\6x-x = 4\\5x = 4\\x= 4/5[/tex]

Since we got different solution for x in both equation, hence both equation are not equivalent.

Answer:

Add/subtract the same quantity to/from both sides .... and yes

Step-by-step explanation:

got the answer from khan.

   

(-35) + (-4)
I need help

Answers

Answer:

-39

Step-by-step explanation:

i think this is the answer

Answer:

-39

Step-by-step explanation:

(-35) - 4

We subtract 4 from -35 because the negative cancels out the positive.

By subtracting, you get -39

I hope this helped, please mark Brainliest, thank you!

Will give brainliest if your answer is correct, please help me with this question it is past due (I have more questions like this that are also pat due, check my profile and go to questions to see them once I post the questions)

Answers

Answer:

Equal angles; Vertical angles ( which means equal ) ; Angles do not share special relationship; and right angles.... Hope this helps!

Step-by-step explanation:

Is it A

B

C

D

Will be marked as crown

Answers

The answer is B just took the test

On a number line , the line segment from Q to S has endpoints Q at 15 and S at 40. Point R partitions the line segment from Q to S in a 6:3 ratio. What is the location of point R?

Answers

Answer:

31.67

Step-by-step explanation:

Given :

Segment QS

Endpoints for Q and S

Q = 15

S = 40

R partitions QS in a 6 : 3,

Sum of ratio = (6 + 3) = 9

Position of R:

(Q's proportion/total ratio) * (S - Q) + Q

6/9 * (S - Q) + Q

6/9 * (40 - 15) + 15

2/3 * 25 + 15

50/3 + 15

16.67 + 15

31.67

The NFL regulation extra point is kicked 12 yards from the goal how many inches away from the goal is the extra point kick

Answers

Answer: 432 inches

Step-by-step explanation: 12 x 36 = 432.

Answer:

88

Step-by-step explanation:

100 - 12

The smallest angle in a triangle is 1/3 as large as the largest angle. The third angle is twice the smallest angle. Find the three angles.

Answers

Let the largest angle in a triangle be x .

Then :-

The smallest angle :-

[tex] \frac{1}{3} x[/tex]

The third angle :-

[tex] \frac{2}{3} x[/tex]

Let us find the measure of the three angles .

Sum of all angles in the interior of a triangle = 180°

An equation to find the value of each angle :-

[tex]x + \frac{1}{3} x + \frac{2}{3} x = 180[/tex]

[tex]x + \frac{3}{3} x = 180[/tex]

[tex]x + \frac{1}{1} x = 180[/tex]

[tex]x + 1x = 180[/tex]

[tex]x + x = 180[/tex]

[tex]2x = 180[/tex]

[tex]x = \frac{180}{2} [/tex]

[tex]x = 90[/tex]

Which means :-

Measure of the largest angle = 90°

Measure of the smallest angle :-

[tex] \frac{1}{3} \times 90[/tex]

[tex] = 30°[/tex]

Measure of the third angle :-

[tex] \frac{2}{3} \times 90[/tex]

[tex] = 60°[/tex]

Therefore :-

The measure of the largest angle = 90°

The measure of the smallest angle = 30°

The measure of the third angle = 60°

You start at (6,7) and move 5 units right and 4 units up.


Plz help me

Answers

Answer:

10, 12

Step-by-step explanation:

6 +4 up 6 is 10

5+7 right 5 is 7

Answer:

(11,11)

Step-by-step explanation:

You start by moving 5 units right which will get you to (11,7) then by moving 4 units up you get to (11,11)

y/15- 2/3= 4/5
Whats the answer for y

Answers

The answer is Y = 22

find the number of terms in the arithmetic sequence
-7,-5.6,-4.2,-2.8,1.4,...,103.6​

Answers

Answer:

80

Step-by-step explanation:

use the formula of arithmetic progression

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