You purchased a bond with a face value of $5,000 five years ago for $4,750. The bond pays a coupon rate of 4%, paid every 2 months (6 times a year). If you want an annual yield of 6% from the bond, how much should you sell the bond for now? Question 6 Part B: Identify the correct Function Notation for this scenario. Group of answer choices 4750(F/P,1%,30) = 33.33(F/A,1%,30) + F P(F/P,1%,10) = 50(F/A,1%,10) + 50000 P= 50(P/A,1%,10) + 50000(P/F, 1%, 10) 4750 = 33.33(A/P,1%,30) + F(A/P, 1%, 30)
You purchased a bond with a face value of $5,000 five years ago for $4,750. The bond pays a coupon rate of 4%, paid every 2 months (6 times a year). If you want an annual yield of 6% from the bond, how much should you sell the bond for now? Question 6 Part B: Identify the correct Function Notation for this scenario. Group of answer choices 4750(F/P,1%,30) = 33.33(F/A,1%,30) + F P(F/P,1%,10) = 50(F/A,1%,10) + 50000 P= 50(P/A,1%,10) + 50000(P/F, 1%, 10) 4750 = 33.33(A/P,1%,30) + F(A/P, 1%, 30)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
You purchased a bond with a face value of $5,000 five years ago for $4,750. The bond pays a coupon rate of 4%, paid every 2 months (6 times a year). If you want an annual yield of 6% from the bond, how much should you sell the bond for now?
Question 6 Part B: Identify the correct Function Notation for this scenario.
Group of answer choices
4750(F/P,1%,30) = 33.33(F/A,1%,30) + F
P(F/P,1%,10) = 50(F/A,1%,10) + 50000
P= 50(P/A,1%,10) + 50000(P/F, 1%, 10)
4750 = 33.33(A/P,1%,30) + F(A/P, 1%, 30)
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