Calculate the present value of a fixed coupon bond with a maturity of 3 years with a face value of $1,000,000, whose coupon rate is 7% per year and IRR is 9%.

Name: Solved: Calculate the present value of a fixed coupon bond with a maturity of 3 years with a face value of $1,000,000, whose coupon rate is 7% per year and IRR is 9%. - MathMaster
Brand: MathMaster
Rating: 4.9 (160 reviews)

160

likes

799 views

Answer to a math question Calculate the present value of a fixed coupon bond with a maturity of 3 years with a face value of $1,000,000, whose coupon rate is 7% per year and IRR is 9%.

$Expert avatar$

Frederik

4.6

101 Answers

\frac{1000000}{\left(1+9\%\right)^{-3}}+7\%\times1000000\times\frac{1-\left(1+9\%\right)^ {-3}}{9\%}=949374,11

Frequently asked questions (FAQs)

What is the length of the adjacent side in a right triangle with a hypotenuse of 10 and an angle of 45 degrees?

Math question: Graph the quadratic function y = x^2 - 4x + 3. Identify the vertex, axis of symmetry, and whether the graph opens upwards or downwards. Plot at least three points on the graph.

What fraction of a pizza remains if you have eaten 3 out of 8 slices?

New questions in Mathematics

11(4x-9)= -319

A car tire can rotate at a frequency of 3000 revolutions per minute. Given that a typical tire radius is 0.5 m, what is the centripetal acceleration of the tire?

calculate the following vector based on its base vectors a= -18i,26j

What’s 20% of 125?

You are planning to buy a car worth $20,000. Which of the two deals described below would you choose, both with a 48-month term? (NB: estimate the monthly payment of each offer). i) the dealer offers to take 10% off the price, then lend you the balance at an annual percentage rate (APR) of 9%, monthly compounding. ii) the dealer offers to lend you $20,000 (i.e., no discount) at an APR of 3%, monthly compounding.

How long will it take for $900 to become $5000 at an annual rate of 11.15% compounded bimonthly?

Determine the minimum degree that an algebraic equation can assume knowing that it admits 2 as a double root and -i as a triple root

The Humane Society has asked for our help again this week. Currently they are charging $50 for an adoption fee. Unfortunately they just pulled this number out of the air and do not know why they are charging this amount. They would like to charge an amount that covers all the adoption costs – both the variable costs for adoptions as well as the fixed cost for the kennel portion of the Humane Shelter operations. We can help them by doing a breakeven analysis. During a client meeting we gathered these facts. There are 2 part-time employees that each earn $1000 per month. The utilities for the kennel area (water, electricity) are $200 per month. The average food cost for animals in the kennel is $800 per month. In addition, each animal that is adopted receives a rabies vaccination that costs $4 and is micro-chipped that costs $6. At the current cost of $50, how many animals must be adopted to break-even? What would break-even be at a $60 adoption fee? What would break-even be if the fee were lowered to $40? The newspaper has suggested that the Humane Society advertise to increase pet adoptions. The package that they have recommended costs $1000 for a very small ad run every day for a month. If the Humane Society does this extra advertising, how will it affect breakeven? Based on what you have learned about elasticity, what price do you recommend for the adoption fee?

A circular window has a rubber molding around the edge. If the window has a radius of 250 mm, how long is the piece of molding that is required ? (To the nearest mm)

A storage maker price is $2.50 per square feet. Find the price of a custom shed 4 yards long, and 5yards wide and 8 feet tall