. Assume that you are considering the purchase of a 20-year, noncallable bond with an annual coupon rate of 9.5%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 10.7% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

$982.48

Step-by-step explanation:

The maximum price you should pay would be the present value of the bond including its cash flows. That is how the price of a bond is computed.

The formula to calculate the price of a bond is;

The payments are semi annual so the variables will need to be converted to semi annual variables.

Coupon payment = 9.5% * 1,000 * 1/2

= $47.50

Number of periods = 20 years * 2 = 40 semi annual periods

Yield = 9.7%/2 = 4.85%

Price = $982.48

$982.48 should be the maximum price you should pay.

Alternatively, use a financial calculator and input the variables as;

Future Value = $1,000

Payment = $47.50

Number of Periods = 40

Rate = 4.85%

answer: the answer is fre sha voca do

step-by-step explanation:

$2416.6

step-by-step explanation:

per hour = $ 25

total work time = 35

commission = 15%

total she has to make = $ 4,500

let she sold x dollar products

so her commission will be 15 % of x

now

total = weekly basic pay + commission

4500= (25*35) + 15 % of x

4500=875 + * x

4500-875 =   * x

3625= * x

multiplying wwith 100 on both sides gives

36250 = 15 x

now

x =  

x= $2416.6