Suppose you purchased a corporate bond with a 10-year maturity, a $1,000 par value, a 9% coupon rate ($45 interest payment every six months), and semiannual interest payments. Five years after the bonds were purchased, the going rate of interest on new bonds fell to 6% (or 6% compounded semiannually). What is the current market value (P) of the bond (five years after the purchase)?(a) P = $890(b) p = $1,223(c) P = $1,090(d) p = $1,128

Q: If a man borrowed money from his girlfriend with simple interest rate of 12% , determine the present…

A: (Q) If a man borrowed money from his girlfriend with simple interest rate of 12% , determine the…

Q: nvestment of P50,000 is made at the beginning of each month for 5 years. How much will the…

A: Constant Monthly deposits = 50000 $ Time = 5 years Interest rate = 7 % Monthly rate - = 7 / 12 =…

Q: Mary bought her cosmetic products during a sale (18% off) at a well-known supermarket. She paid P493…

A: Answer :-   Given data -   Mary bought her cosmetic products during a sale --  18% off     She paid…

Q: You deposit $10,000 in a fund that pays compound annual interest equal to 3%. One year later the…

A: The nominal rate of interest which depicts the time value of money can be any declared interest…

Q: Solar panels on your house will save you $2,000 per year in electricity expense. The panels will…

A: The time it takes to recoup the value of AN investment is mentioned because the payback amount.…

Q: Engineering Economics A debt is discharged by paying 20 equal payments of 12,000 pesos at the end of…

A: Given Information: Number of payments = 20 Payment at every 3 months = 12,000 Interest rate = 16.5%…

Q: Question 7 You want to borrow R10,000 from a local bank, which is to be repaid in 2 equal semiannual…

A: The compounded value can be calculated using the below-drawn formula:  Compound interest (FV)…

Q: A debt of P 12,000 with interest of 20% compounded quarterly is to be amortized by equal semi-annual…

A: Solving for the semi annual payment as soon as everything is set for solving we will now transfer…

Q: oan of P5000 is made for a period of 13 months, from January 1 to January 31 the following year, at…

A: Principle Amount = 5000 Time Period = 13 months Interest rate = 20%

Q: 7. The interest earned on a P8, 000 term deposit was P1, 200. How long was the term if the interest…

A: Interest refers to the amount paid in excess of the principal amount by the borrower to the lender.…

Q: You are to pay a bill every month for 5 years. The accumulated amount of the payment you paid is 60k…

A: Answer in step 2

Q: What is the nominal rate compounded continuously for 5 years if the capital recovery factor is…

A: Given  Capital recovery factor for n =5 is 0.2386  We have to find nominal rate compounded…

Q: A wind turbine is to be installed. There will need to be maintenance costs every 3 years beginning…

A: To find the Present Value of recurring maintenance costs we take following steps : 1 .) We find the…

Q: A company purchased a machine for $30,000. It paid 30% as a down payment and obtained a loan for the…

A: nominal interest rate refers the percentage increase in money you pay the lender for the use of the…

Q: of a lease contract are as follows: Annual lease = 1,500,000 pesos, 1st payme by 10% each year for 4…

A:

Q: Q2. Subject: - Engineering Economy i) If a continuousinvestment of $5,600 per year for 29 years…

A: Continuous investment making annual payments refers to an annuity cash flow . In the above question…

Q: What is the present equivalent value

A: Given the weekly balance deposit is $ 359. Time period (t) given is 5 years.   APR (rate of…

Q: A bank will lend $ 10,000 to a landlord. The debt must be repaid in 24 months in monthly…

A: A loan is a monetary arrangement between two groups, a bank and a borrower. Under this…

Q: You have borrowed $10,000 from a bank with the understanding that you will pay it off with a lump…

A: The future value of loan = $12000 Present value of loan = $10000 Time period (n) = 2 years

Q: If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective…

A: The nominal interest rate would be the interest rate which would be charged by the banks. The…

Q: A bank advertises quarterly compounding for business checking accounts. What payment and compounding…

A: A bank is a financial institution that is allowed to accept and make loans for deposits. Financial…

Q: John has just graduated from State University. He owes $35,000 in college loans, but he does not…

A: The loan amount owned at the end of 5 years can be calculated as follows:…

Q: An investment offers 5% interest compounded continuously. What is the amount of interest earned in 1…

A: The term "continuously compounded" refers to the fact that interest can compound indefinitely.…

Q: A man deposited ₱2,000 in a bank at a rate of 12% per annum from January 10,1999 to November…

A: Compound interest, also known as Interest on Interest, is interest that is added to the interest…

Q: A man deposited ₱5,000 in a bank at a rate of 12% per annum from January 10,1999 to November…

A: Solution : Introduction Accumulated Interest for 365 days principle Amount x interest rate

Q: A total of $24,000 is invested in two corporate bonds that pay 3.5% and 5% simple interest. The…

A: Interest refers to the amount paid in excess of the principal amount by the borrower to the lender.…

Q: An obligation of ₱20,000 is to be repaid in uniform annual amounts each of which included repayment…

A: Given: The principal amount is = ₱20,000 Time period = 5 years The interest rate is = 10% per year…

Q: A businessman invest P 100,000 now and received two payments of P 102,139 at the end of the 3rd year…

A: Given the information: Present value = P100000 Payment at the end of 3rd year = P102139 Payment at…

Q: A fixed-interest loan bears interest at 8% per annum payable half-yearly in arrear and will be…

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: A bond pays a semiannual coupon, and the last coupon was paid 61 days ago. If the annual coupon…

A: The annual coupon payment = $75 The last coupon paid = 61 days ago Accrued interest =?

Q: A man borrowed P25, 000 from a bank for which he signed a promissory note to repay the loan at the…

A: The interest charged by the bank would be the amount written on the promissory note less the legal…

Q: You are given an annuity payable continuously at the rate of • $1000 per year while both (40) and…

A: An annuity is a financial product that pays out a fixed stream of payments to an individual,…

Q: How much would be in your account in 10 years after depositing $2000 now? The annual interest rate…

A: Answer -1  According to the question, we need to calculate future value.  Present value (PV) = $2000…

Q: If $3000 invsted in a compound interest account for 4 years, amounts to $3612, what is the annual…

A: Given, P+I = A = 3612 P = 3000 n = time = 4 years Compound interest Rate = r = ??

Q: A loan of P2000 is made for a period of 13 months, from January 1 to 31 January the following year,…

A: The loan amount = 2000 Time period = 13 months Interes rate = 20%

Q: Eng. Eco. Q5. Sam invests a sum of $5,000 in a bank at a nominal interest rate of 12% for 10 years.…

A: Given the investment amount = $5000 Nominal interest rate = 12% Time = 10 years

Q: A man borrowed P10T payable at the end of one year. He only received the amount of P7800T after the…

A: SOLUTION As according to the question, a man borrowed p10T means 10000 and he only received 7800T…

Q: An amortization of a debt is in a form of a gradient series of ₱5,000 on the first year, ₱4,500 on…

A: Given value: First year = 5000 Second year = 4500 Third year = 4000 Fourth year = 3500 Interest rate…

Q: A loan of nominal amount £200000 in bonds of nominal amount £100 is to be repaid by 20 annual…

A: In this question we have to find out the investor pay for the entire loan with the help of above…

Q: Brix borrowed 15,000 pesos which is compounded bi-monthly and becomes 22,300 pesos after 5 years.…

A: Interest refers to the amount paid in excess of the principal amount by the borrower to the lender.…

Q: 1. Many small companies use accounts receivable as collateral to borrow money for continuing…

A: The amount of interest that is payable every period, expressed as a percentage of the principal that…

Q: You borrowed $100,000 at 6% per year compounded monthly for 48 months. Which is the number of first…

A: Borrowed amount = 100000 interest rate = 6 % compounded monthly time = 48 months therefore the…

Q: Ahmad wants to borrow KD10,000 now from a bank to purchase a new car. He would like to .1 repay the…

A: The effective interest rate (EIR), effective annual interest rate, annual equivalent rate (AER) or…

Q: A certain annuity pay P10k every 6 months. If the present value of the annuity is P150k and the…

A: Annuity value = P10K Present value = P150K Future value = P200K Number of payments = 200 / 10 = 20…

Q: A secondhand van is offered for sale. The owner offers two methods of payment . The first method…

A: Better method of payment  for the buyer is given below...

Q: A farmer went to the bank to deposit P4000 at a rate of 12% per annum. If the farmer went to the…

A: Simple interest refers to the interest on a principal amount and is not compounded. The interest is…

Q: RM10,000 is invested for 4 years 9 months in a bank earning a simple interest rate of 10% per annum.…

A: From the question, we have information that- Principal amount(P)= RM 10,000Simple Interest Rate (R)=…