Given the current yield to maturity of the bond, the price of the bond five years for now is $883.10.
<h3>What is the price of the bond five years from now?</h3>
The first step is to determine the yield to maturity of the bond. The yield to maturity is the return on the bond if the bond is held to matuity.
Yield to matuity can be determined using a financial calculator:
Cash flow in year 0 = -875
Cash flow each year from year 1 to 25 = 85
Cash flow in year 25 = $1000
Yield to matuity = 9.86%
Future price of the bond: (coupon x future price factor) + [FV / (1 + YTM)^n)]
Future price factor = [1 - (1/YTM)^n] / YTM
= [1 - 1/0.0986^20] 0.0986 = 8.595555
[85 x 8.595555 ] + 152.478323 = $883.10
To learn more about yield to maturity, please check: brainly.com/question/26484024
How many grandchildren do they have?
Answer:
In order to find x, you will have to use the operation of equality to isolate the x.
<em>Now, use the division property of equality and divide by 15 on both sides. This will cancel out the 15 on the left side of the equation and isolate the x completely.</em>
<em>Thus, this is your answer:</em>
Answer:
29.32
Step-by-step explanation:
sense 1 is the hundredth you just round now so 5 is big enough so it would make the hundreth number go up by 1.
It will take 45 weeks.25 weeks to gain back the 500 dollor he spent and 20 to make 400 dollor from it
