Answer:4
Step-by-step explanation:
A zero-coupon bond doesn’t make any payments. Instead, investors purchase the zero-coupon bond for less than its face value, and when the bond matures, they receive the face value.
To figure the price you should pay for a zero-coupon bond, you'll follow these steps:
Divide your required rate of return by 100 to convert it to a decimal.
Add 1 to the required rate of return as a decimal.
Raise the result to the power of the number of years until the bond matures.
Divide the face value of the bond to calculate the price to pay for the zero-coupon bond to achieve your desired rate of return.
First, divide 4 percent by 100 to get 0.04. Second, add 1 to 0.04 to get 1.04. Third, raise 1.04 to the sixth power to get 1.2653. Lastly, divide the face value of $1,000 by 1.2653 to find that the price to pay for the zero-coupon bond is $790,32.
Answer:
p=10000(26/25)t
Step-by-step explanation:
Considering that the population, p, of a town after t years is represented using the equation p=10000(1.04)^-t
The equation is equivalent to p=10000(26/25)t, because;
26/25 = 1.04
Hence; p=10000(26/25)t =p=10000(1.04)^t
Answer:
Slope of PQ = 0
Slope of MN = infinity
PQ and MN are perpendicular to each other
Step-by-step explanation:
for any two points (x1, y1), (x2, y2)given in coordinate plane slope is given by
For any line if slope is zero it is parallel to X axis and perpendicular to Y axis
For any line if slope is infinity it is parallel to Y axis and perpendicular to X axis
Also we know X and Y are perpendicular to each other.
Since slope of PQ is zero it is parallel to X axis and perpendicular to Y axis
Since slope of MN is infinity it is parallel to Y axis and perpendicular to X axis.
Thus two lines PQ and MN are perpendicular to each other.
When dividing by a negative the sign changes to the opposite.
