197k views
13 votes
Business Question! Just the first problem please, thank you

Business Question! Just the first problem please, thank you-example-1
User Gregg B
by
8.0k points

2 Answers

2 votes

Answer:

Huh? hshjssjsjsjshshshsjsjs

User MANISH ZOPE
by
9.2k points
6 votes

Answer:

  1. 34 coupons.
  2. $33.75

Step-by-step explanation:

The coupons are the interest payments the bond makes.

1. The bond has a term of 17 years and coupons are to be paid semi-annually.

This means that for every year, 2 coupon payments will be made.

In 17 years therefore:

= 17 * 2

= 34 coupons

2. The interest on this bond is 6.75% in a year. The coupon is however, semi-annual. Payment per coupon will therefore be half of the yearly rate:

= 6.75% * 1,000 * 1/2

= $33.75

User Lev Selector
by
7.6k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories