# An investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of$40. If the

An investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of$40. If the semiannual market rate of interest is five percent, what is the current market value of the bond?

## Coates inc. experienced the following events in 2014, in its first year of operation: (1) received $20,000 ## Steven and Emily Campbell are planning to open a casual dining restaurant in downtown Akron, Ohio, and ## Roxy operates a dress shop in arlington, virginia. lisa, a maryland resident, comes in for a measurement ## Asap which statement is true? a. as the risk of an investment decreases, the opportunity of gains increases. ## Which tool or feature reduces speckling, dust particles, scratches, and minute light ## FIllmore Company began operations on Sept. 1 by purchasing$6000 of inventory and $600 of cleaning supplies. During the month, ## This Post Has 3 Comments 1. Expert says: The correct answer is b 2. Expert says: answer; institution based; 3. love0000 says: Bond Price =$828.4091365 rounded off to $828.41 Explanation: To calculate the price of the bond today, we will use the formula for the price of the bond. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be, Coupon Payment (C) = 40 Total periods (n) = 20 * 2 = 40 r or YTM = 0.05 or 5% The formula to calculate the price of the bonds today is attached. Bond Price = 40 * [( 1 - (1+0.05)^-40) / 0.05] + 1000 / (1+0.05)^40 Bond Price =$828.4091365 rounded off to \$828.41

$An investor purchases a 20-year, 1,000 par value bond that pays semiannual interest of 40. If the$