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Start learning 50% faster. Sign in nowEvery year the bold will pay the coupon amount, which is positive cash flow for the bond holder. Cash flow at the end of year one = 1000x 12%= 120 Cash flow at the end of year two = (1000x 12%)+1000= 120+1000=1120 At the end of year two, the maturity value will also be repaid so added in the cash flow. Both these cash flows are to be discounted to the present value (PV) using discounting formula, taking 10% as discounting rate PV of the bond = (120/(1.10))+(1120/(1.10)(1.10)) =1034.71 or 1035 Please note that if the discount rate changes and everything else remains the same, the value of the bond changes
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A mixture consisting of 40 liters of milk and water has water accounting for 10% of its total volume. To increase the percentage of water in the mixture...
The ratio of the quantity of milk to that of water in a 21-liter mixture is 5:2. How much milk should be added to the mixture such that the ratio of mil...
