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QUESTION S Consider a bond which has a face value of $2,000, a coupon of $50, and is known to have a is the present value of the bond? O$199.63 O$1,526.77 O $1,560.80 O $373.85

QUESTION S Consider a bond which has a face value of $2,000, a coupon of $50, and is known to have a is the present value of the bond? O$199.63 O$1,526.77 O $1,560.80 O $373.85

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accounting could someone show me how to work these out? QUESTION S Consider a bond which has a face value of $2,000, a coupon of $50, and is known to have a yield to maturity of 8%. Suppose that the bond matures in five years. What is the present value of the bond? $199.63 O $1,526.77 O $1,560.BO O $373.85 QUESTION 6 Consider the market for a bond which has a face value of $2,000, pays a coupon of $100, and matures in 2 years. Suppose the demand for such bonds is given by P=2,900-Q, and that the supply of such bonds is given by P200-20 What the equilibrium price and quantity of bonds sold? OP-$900, Q=2,000 OP-$2.000, Q'-900 OP=$200, Q*=9,000 OP=$9,000, Q* 200
Transcribed Image Text:Accounting could someone show me how to work these out? QUESTION S Consider a bond which has a face value of $2,000, a coupon of $50, and is known to have a yield to maturity of 8%. Suppose that the bond matures in five years. What is the present value of the bond? $199.63 O $1,526.77 O $1,560.BO O $373.85 QUESTION 6 Consider the market for a bond which has a face value of $2,000, pays a coupon of $100, and matures in 2 years. Suppose the demand for such bonds is given by P=2,900-Q, and that the supply of such bonds is given by P200-20 What the equilibrium price and quantity of bonds sold? OP-$900, Q=2,000 OP-$2.000, Q'-900 OP=$200, Q*=9,000 OP=$9,000, Q* 200
QUESTION 7 Consider the market for a bond which has a face value of $2,000, pays a coupon of $100 and matures in 2 years. Suppose the demand for such bonds is given by P-2,900-Q, and that the supply of such bonds is given by P=200-20. What is the yield to maturity of this bond, given the equilibrium price from the previous question? 0.1% 0.05% - 10% 05%
Transcribed Image Text:QUESTION 7 Consider the market for a bond which has a face value of $2,000, pays a coupon of $100 and matures in 2 years. Suppose the demand for such bonds is given by P-2,900-Q, and that the supply of such bonds is given by P=200-20. What is the yield to maturity of this bond, given the equilibrium price from the previous question? 0.1% 0.05% - 10% 05%
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