Hire Refrigeration company floated Rs. 3 Billion bond on July 1, 2016. Each bond having face value of Rs. 1,000. Maturity of bond is 5 years, while interest coupon rate is 12%. What will be the value of bond if market interest rate is 8% and 15% respectively. Also what will be the new value of bond after 2 years if the market interest rate remains constant.

Answers

Answer 1

1. The value of the bond with a market interest rate of 8% is $1,159.71.

2. The value of the bond with a market interest rate of 15% is $899.44.

3. The new value of the bond after 2 years with market interest rate of 8% is  $1,103.08.

4. The new value of the bond after 2 years with market interest rate of 15% is $931.50.

Data and Calculations:

N (# of periods) = 5 years

I/Y (Interest per year) = (A) 8% or  (B) 15%

PMT (Periodic Payment) = $120

FV (Future Value) = $1,000

Results

PV = $1,159.71   and $899.44 for (B)

Schedule at 8% interest rate

Period       PV              PMT             Interest       FV

1            $1,159.71       $120.00       $92.78       $1,132.49

2           $1,132.49       $120.00       $90.60     $1,103.08

3           $1,103.08       $120.00       $88.25      $1,071.33

4           $1,071.33       $120.00        $85.71      $1,037.04

5         $1,037.04       $120.00        $82.96     $1,000.00

Schedule at 15% interest rate

Period       PV              PMT             Interest       FV

1           $899.44    $120.00           $134.92      $914.35

2           $914.35      $120.00           $137.15      $931.50

3          $931.50      $120.00           $139.73      $951.23

4          $951.23      $120.00           $142.68      $973.91

5          $973.91      $120.00           $146.09   $1,000.00

Learn more about the value of bonds based on effective interest rate here: https://brainly.com/question/25524725 and https://brainly.com/question/23265123


Related Questions

Which situation results in a zero balance?
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B Pedro deposits $2,346 into a new checking account and then writes a check for $346.
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Step-by-step explanation:

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Step-by-step explanation:

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Answers

The average speed in feet per hour will be;

⇒ 942.85 feet per hour

What is an expression?

Mathematical expression is defined as the collection of the numbers variables and functions by using operations like addition, subtraction, multiplication, and division.

Given that;

Distance = 22 inches

Time = 7 seconds

Now,

Since, A tortoise moves at a speed of 22 inches in 7 seconds.

Hence, Distance = 22/12 feet

And, Time = 7 / 3600

Thus, The average speed = (22/12) / (7/3600)

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Answers

Answer:

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Step-by-step explanation:

Leave a brainliest if this helped!

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Answers

Answer:

y=8 x+2

Step-by-step explanation:

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O A right
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OD. down

Answers

Answer:

B. Up

Step-by-step explanation:

If you alter a function by adding or subtracting a constant to the end of the expression, then the graph will slide up (down if subtracting) If you alter the x value by altering the expression in close to the x with addition or subtraction the graph will slide left or right.

Vertical translations (sliding up or down) go up when adding and down when subtracting as you would expect it to.

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Answers

Are there some options you could add to the question?

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Answers

Answer:

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Step-by-step explanation:

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5×20=100

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Step-by-step explanation:

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Answer:

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Step-by-step explanation:

Answer:

29

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Neika is saving her money to buy a DVD that costs $45. If she has a job that pays $8 per hour, write and solve an inequality that shows the minimum number of hours that Neika will need to work in order to pay for the DVD.​

Answers

Answer:

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Step-by-step explanation:

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Answer:

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Step-by-step explanation:

QUESTION
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Step by step explanation:

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trust my answer and liked and make it brainliest please

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Answers

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Answer:

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Step-by-step explanation:

Sasha drinks 2.5 liters of water each
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Answers

Answer:

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The value of x in the triangle is 70°

What is a scalene triangle?

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Let's assume that angle y = 60° and angle z = 50°  

Then;

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Answers

Answer:

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Answers

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First, remember that for a rectangle of length L and width W, the area is given as:

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The area of the first rectangle is:

[tex]A = 18ft*14ft = 252 ft^2[/tex]

The area of each one of the smaller ones is:

[tex]A' = 8ft*4ft = 32 ft^2[/tex]

Then the area that we need for the carpet is:

[tex]A - 2*A' = 252 ft^2 - 2*32 ft^2 = 188 ft^2[/tex]

We need 188ft^2 of carpet to cover the floor.

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They would likely have 55 players at the end of the season

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Answers

The equation that models the amount of gas left in the car as Phan drives is [tex](g = 18 - 2h)[/tex] and the total amount of gasoline does it take to fill her tank is 18 gallons.

Given :

The table below shows the amount of gas left in her tank as she drives.Number of Hours Spent Driving (h) 3 5 7 9 Amount of Gas Left in Tank, in gallons (g) 12 8 4 0

The following steps can be used in order to determine the equation that models the amount of gas left in the car as Phan drives and the total amount of gasoline:

Step 1 - The two-point form of the line can be used in order to determine the equation that models the amount of gas left in the car as Phan drives.

[tex]\dfrac{y-y_1}{x-x_1}=\dfrac{y_2-y_1}{x_2-x_1}[/tex]

Step 2 - Now, substitute the value of [tex](x_1,y_1)[/tex] and [tex](x_2,y_2)[/tex] in the above expression.

[tex]\dfrac{g-12}{h-3}=\dfrac{8-12}{5-3}[/tex]

Step 3 - Simplify the above equation.

[tex]\begin{aligned}\\(g - 12)&=-2(h-3)\\g - 12&=-2h+6\\g &= 18-2h\\\end{aligned}[/tex]

Step 4 - Now, substitute the value of (h = 0) in the above equation.

[tex]g = 18-2(0)\\g = 18 \; {\rm gallons}[/tex]

Therefore, the correct option is A).

For more information, refer to the link given below:

https://brainly.com/question/11897796

Answer:

g = 18 – 2h; 18 gallons

Step-by-step explanation:

The answer above is correct.

help pls, i will give brainliest :)

Answers

I think the answer should be -3

To make cherry trail mix, Sebastián needs 4 oz of nuts for every 3 oz of dried
cherries. To make sunflower trail mix, he needs 5 oz of nuts for every 2 oz of
sunflower seeds. Can Sebastián make more cherry trail mix or sunflower trail mix
with 20 oz of nuts? Show your work.

Answers

The number of servings that can be obtained from the 20 oz of nuts is given by the number of 4s and 5s in 20.

Sebastian can make more cherry trail mix

Reasons:

The given recipe are;

1 cherry trail mix = 4 oz. of nuts + 3 oz. of dried cherries.

1 sunflower trail mix = 5 oz. of nuts + 2 oz. of sunflower seeds

The number of cherry trail mix Sebastian can make with 20 oz. of nuts is therefore;

[tex]\displaystyle Number \ of \ cherry \ trail \ mix = \mathbf{ \frac{20 \ oz \ of \, nuts}{4 \ oz \, of \, nuts \, per \, cherry \ trail \, mix }} = 5 \ cherry \ trail \ mix[/tex]

The number of cherry trail mix that can be made with 20 oz. of nuts = 5 cherry trail mixes

[tex]\displaystyle Number \ of \ sunflower \ trail \ mix =\mathbf{ \frac{20 \ oz \ of \, nuts}{5 \ oz \, of \, nuts \, per \, sunflower\ trail \, mix }}[/tex]

[tex]\displaystyle \frac{20 \ oz \ of \, nuts}{5 \ oz \, of \, nuts \, per \, sunflower\ trail \, mix } = \mathbf{4 \ sunflower \ trail \ mix}[/tex]

The number of sunflower trail mix that can be made with 20 oz. of nuts = 4 sunflower trail mix

Therefore;

Sebastian can make more cherry trail mix than sunflower trail mix with 20 oz. of nuts.

Learn more about division of numbers in arithmetic here:

https://brainly.com/question/917110

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Answers

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Do you have any picture?

Answer:

50

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Answers

Answer:

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Step-by-step explanation:

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so

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3x = 15

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