The price of the new bonds given the face value and interest rate is $8,928.57.
What is the price of the bonds?Bonds are debt instruments issued by a firm with the purpose of raising capital to carry out projects. The price of the bonds can be determined by discounting the face value of the bonds by the interest rate.
The price of the bonds = face value of the bonds / ( 1 + interest rate)
$10,000 / (1.12) = $8,928.57
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What is the purpose of horizontal communication?
Answer:
Built for communication across roles instead of from top down.
Explanation:
To promote coordination and cooperation among employees with a similar rank, position, or status in the company.
Why are process layouts more popular than other layouts in the service industry?
Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 8.13%. If the yield to maturity for the bond is 7.53%, what will the price of the bond be
Based on the information given the price of the bond is $956.91.
Price of bondTo determine the of the bond we would be using financial calculator by inputting the data below.
N=Number of years=2×11=22
PMT=Payment per period=7.53%×1000/2=37.65
FV=Face value=1000
Interest rate=8.13%/2=4.065
Present Value=?
Hence:
PV=$956.91
Inconclusion the price of the bond is $956.91.
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