Answered

At Westonci.ca, we make it easy for you to get the answers you need from a community of knowledgeable individuals. Join our Q&A platform to get precise answers from experts in diverse fields and enhance your understanding. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

If the market rate of interest is 7%, the price of 6% bonds paying interest semiannually with a face value of $500,000 will be

Sagot :

Answer:

the present value is $495,250.76

Explanation:

The computation of the present value is shown below;

Given that

RATE is 7% ÷ 2 = 3.5%

Future value be $500,000

NPER is 2

PMT = $500,000 × 6% ÷ 2 = $15,000

The formula is shown below:

=-PV(RATE,NPER,PMT,FV,TYPE)

After applying the above formula, the present value is $495,250.76

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.