Sydney purchases a newly issued, two-year government bond with a principal amount of $10,000 and a coupon rate of 6% paid annually. One year before the bonds matures (and after receiving the coupon payment for the first year), Sydney sells the bond in the bond market. What price (rounded to the nearest dollar) will Sydney receive for his bond if newly issued one-year government bonds are paying a 5% coupon rat

$10095

Explanation:

First, we'll calculate the present value which will be:

= 600/(1+5%) + 600/(1+5%)² + 10000/(1+5%)²

= 600/(1+0.05) + 600/(1+0.05)² + 10000/(1+0.05)²

= 600/(1.05) + 600/1.1025 + 10000/1.1025

= 571.43 + 544.22 + 9070.30

= 10185.95

Then, we'll deduct the first coupon gotten. Thai will be:

= 10185.95 - 571.43

= 9614.52

Then, the price that Sydney will receive for his bond if newly issued will be:

= $9614.52 × (1+5%)

= $9614.52 × 1.05

= $10095

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know