On september 1 2013 thomas doniphon purchased a us

Reference no: EM13617712

On September 1, 2013 Thomas Doniphon purchased a U.S. Government bond having a coupon rate of 4.5 percent, a par value of $1000 and 20 years to maturity. Assuming that the bond makes semiannual coupon payments and is priced to offer investors a semiannually compounded yield to maturity of 5.0 percent.

a. Determine the price of the bond on September 1, 2013

b. If the required yield to maturity for the bond increases to 6.0 percent on September 28, 2013 and then remains constant, so that future coupon payments will be reinvested at 6.0 percent compounded semiannually, determine the future amount to which the initial investment will have grown by September 1, 2033 when the bond matures.

Reference no: EM13617712

Questions Cloud

Determine the initial yearly income that could be provided : tod lohman has filed a lawsuit against the party alleged to be at fault in an accident resulting in his total

A vending macine dispenses coffee into a twelve-ounce cup : a vending macine dispenses coffee into a twelve-ounce cup. the amount of coffee dispensed into the cup is normally

Seventy percent of houshold say the would feel secure if : seventy percent of houshold say the would feel secure if they had 50000 in saving. you randomly select 8 houshold and

Fred is the owner of a local feed store which one of the : fred is the owner of a local feed store. which one of the following ratios should he compute if he wants to know how

On september 1 2013 thomas doniphon purchased a us : on september 1 2013 thomas doniphon purchased a u.s. government bond having a coupon rate of 4.5 percent a par value of

A large clinical trial of the effect of diet on breast : a large clinical trial of the effect of diet on breast cancer assigned women at random to either a normal diet or a

Suppose the mean and standard deviation obtained were based : a special diet is intended to reduce systolic blood pressure. if the diet is effective the target is to have the

Frisker motors is expected to have earnings of 600 per : frisker motors is expected to have earnings of 6.00 per share at the end of the next year date 1. frisker will retain

Find the power to the air and how much air should be flowed : a power plant generates 150 mw of electrical power. it uses a supply of 1000 mw from a geothermal source and rejects

User Account

All Pages