Business, 09.04.2020 18:15, angeldaughter0620
Simon purchases a bond, newly issued by Amalgamated Corporation, for $1,000. The bond pays $60 to its holder at the end of the first and second years and pays $1,060 upon its maturity at the end of the third year. a. What are the principal amount, the term, the coupon rate, and the coupon payment for Simon’s bond?b. After receiving the second coupon payment (at the end of the second year), Simon decides to sell his bond in the bond market. What price can be expect for his bond if the one-year interest rate at that time is 3 percent? 8 percent? 10 percent?c. Can you think of a reason that the price of Simon’s bond after two years might fall below $1,000, even though the market interest rate equals the coupon rate?
Answers: 1
Business, 22.06.2019 11:40, keke6361
On coral island in 2012, the labor force is 12,000, the unemployment rate is 10 percent, and the labor force participation rate is 60 percent. during 2013, 200 unemployed people found jobs and the working-age population increased by 1,000. the total number of people in the labor force did not change. the working-age population at the end of 2013 was the unemployment rate at the end of 2013 was round up to the second decimal. the labor force participation rate at the end of 2013 was round up to the second decimal.
Answers: 1
Simon purchases a bond, newly issued by Amalgamated Corporation, for $1,000. The bond pays $60 to it...
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