You have just bought a security that pays $500 every six months. The security lasts for 10 years. Another security of equal risk also has a maturity of 10 years, and pays 10 percent compounded monthly (that is, the nominal rate is 10 percent). What should be the price of the security that you just purchased?.

Answers

Answer 1

Answer:

PV= $6,178.61

Explanation:

Giving the following information:

Number of years= 10

Cash flow= 500 semiannually

Discount rate= 10% compounded monthly

First, we need to calculate the semiannual interest rate:

i= 0.10/12= 0.00833

i= (1.00833^6) - 1= 0.051

Now, we need to calculate the final value of security:

FV= {A*[(1+i)^n-1]}/i

A= cash flow

FV= {500*[(1.051^20) - 1] / 0.051

FV= $16,708.79

Finally, the present value:

PV= FV/(1+i)^n

PV= 16,708.79/1.051^20

PV= $6,178.61


Related Questions

A horse trainer records the distance a horse travels during three different trials

Answers

The average speed is equal to the total distance per unit total time and for the horse from the given parameters, the value is; 0.3 km/min

What is the average speed?

From the attached table, we are given the following data:

Time 1 = 15 minutes

Time 2 = 30 minutes

Time 3 = 45 minutes

Distance 1 = 4.5 kilometers

Distance 2 = 9.0 kilometers

Distance 3 = 13.5 kilometers

Thus; Total Time = 15 + 30 + 45 = 90 minutes

Total Distance = 4.5 + 9 + 13.5 27 kilometers

Formula for average Speed is;

Average speed = Total Distance/Total Time

Average Speed = 27/90

Average speed = 0.3 km/min

The complete question is;

A horse trainer records the distance a horse travels during three different trials. What is the horse's average speed in kilometers per minute?

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Which event caused many drovers to shift from using the chisholm trail to the western trail.

Answers

Answer:

Violence, vigilante groups, and cattle rustling caused further problems for the drovers. By 1859, the driving of cattle was outlawed in many Missouri jurisdictions. By the end of the Civil War, most cattle were being moved up the western branch of trail, being gathered at Red River Station in Montague County, Texas.

A marketing company wants to estimate the proportion of consumers.

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Answer:

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A student attaches a block to a horizontal spring so that the block-spring system will oscillate if the block-spring system is released from rest at a horizontal position that is not the system’s equilibrium position. The oscillatory motion of the system is described by the graph of the block’s acceleration as a function of time. An identical experiment is conducted except that a new spring is used that has a spring constant that is twice the value of that of the original spring. Which two of the following predictions are correct about the system when it undergoes simple harmonic motion? select two answers

Answers

Since the spring constant was increased by 2 the following are true;

The amplitude of oscillation will be increased by a factor of 2.The maximum spring potential energy of the system will be increased by a factor of 4.

What is Simple harmonic motion?

The term simple harmonic motion refers to a regular repeating motion whose acceleration is directed towards the center of the motion.

From the description in the question, we can see that the new spring used has a spring constant that is twice that of the first spring. The following therefore are true;

The amplitude of oscillation will be increased by a factor of 2.The maximum spring potential energy of the system will be increased by a factor of 4.

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A company purchased 200 units for $40 each on january 31. It purchased 200 units for $30 each on february 28. It sold a total of 250 units for $100 each from march 1 through december 31. If the company uses the last-in, first-out inventory costing method, calculate the cost of ending inventory on december 31. (assume that the company uses a perpetual inventory system. )

Answers

The cost of ending inventory on December 31st is; $5,250

What is the cost of inventory?January 31 Purchases = 200 × $40 = $8,000

February 28 Purchases = 200 × $30 = $6,000

Thus;

Total cost of purchases = $8000 + $6000 = $14000

Weighted average cost = $14000 ÷ (200 + 200) = $35 per unit

Units of ending inventory = Total units purchased - Total units sold

Units of ending inventory = (200 + 200) - 250 = 150

Amount of ending inventory on December 31 = 150 × $35 = $5,250

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Sneha is, by nature, a nervous person. She has been having a hard time concentrating and seeks the help of a counselor, amanda. Amanda begins by being very warm. She does not direct sneha with regards to what she should talk about. Instead, amanda primarily focuses on empathizing with sneha and accepting her for who she is. Which therapeutic orientation is amanda most likely using?.

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Client-centered therapy is a form of therapeutic orientation based on acceptance, therapist congruence (authenticity), and empathic understanding.

What is Client-centered therapy?

It is a psychological theory applied in therapeutic work that deals with the ways in which people consciously perceive themselves.

Characteristics of Client-centered therapy

The therapist accepts the client without judging her actions or thoughts, allowing the client to perceive her experiences without the distortion of everyday relationships.

Empathy is used, which implies the ability to enter the client's perspective and to perceive the world from it, as well as to experience the client's feelings.

Therefore, we can conclude that Client-centered therapy is based on the therapist's understanding, which makes it easier for the client to accept herself and her experiences.

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Explain the process to solve the equation 1/4x=-5/8.

Answers

Answer:

[tex]x=-\frac{5}{2}[/tex]

Explanation:

Given the following question:

[tex]\frac{1}{4} x=-\frac{5}{8}[/tex]

To find the value of x we have to multiply both sides by 1/4.

[tex]\frac{1}{4} x=-\frac{5}{8}[/tex]
[tex]\frac{1}{4} x\div\frac{1}{4} =x[/tex]
[tex]\frac{1}{4} x=-\frac{5}{8}=-\frac{5}{8} \times\frac{1}{4} =-\frac{5}{2}[/tex]
[tex]x=-\frac{5}{2}[/tex]

Hope this helps.

Explain the following best practices of Security.
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Answers

Answer:

a. Security transaction

Explanation:

Because the security transaction is the safest, from 2 more options

A salt shaker is filled with 25 g sodium chloride. How many mole(s) of nacl does it contain?

Answers

Considering the definition of molar mass, a salt shaker contains 0.43 moles of sodium chloride.

Definition of molar mass

The molar mass of substance is a property defined as its mass per unit quantity of substance, in other words, molar mass is the amount of mass that a substance contains in one mole.

The molar mass of a compound (also called Mass or Molecular Weight) is the sum of the molar mass of the elements that form it (whose value is found in the periodic table) multiplied by the number of times they appear in the compound.

Molar mass of NaCl

In this case, you know the molar mass of the elements is:

Na= 23 g/moleCl= 35.45 g/mole

So, the molar mass of the compound NaCl is calculated as:

NaCl= 23 g/mole + 35.45 g/mole

Solving:

NaCl= 58.45 g/mole

Amount of moles of 25 grams of NaCl

Next, you can apply the following rule of three: If by definition of molar mass 58.45 grams of the compound are contained in 1 mole, 25 grams of the compound are contained in how many moles?

[tex]amount of moles=\frac{25 gramsx1 mole}{58.45 grams}[/tex]

amount of moles= 0.43 moles

Finally, a salt shaker contains 0.43 moles of sodium chloride.

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Which of the following best explains why the painting was seen as a challenge to social conventions when it was painted?

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The painting was seen as a challenge to social conventions because women were rarely the subject of European art during the period.

What is a painting?

A painting can be defined as an artwork that is typically used by an artist to express and depict an idea or thought about a place, thing, people, etc.

In this scenario, the reason which best explains why the particular painting was considered or seen as a challenge to social conventions is because women were rarely the subject of European art during the period.

However, paintings of women were later embraced as a tool to influence social changes when female artist began to draw and paint.

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The correct answer is number B)

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Answer:

It is incorrect

Explanation:

What has the largest negative impact on biodiversity.

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Its building over habitats

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The inference deduced regarding the phrase "chief charm" is best interpreted as unsurpassed elegance.

What is an inference?

It should be noted that an inference simply means the conclusion that can be deduced from the evidence given.

In this case, in the context of the passage as a whole, the phrase "chief charm" is best interpreted to mean an unsurpassed elegance.

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The inference about the given passage phrase "chief charm" is best interpreted to be unsurpassed elegance.

What is an inference?

An  Inference is known to be the way of using observation and framework to reach a good and logical endpoint or conclusion.

Note that the phrase of  "chief charm"  was used by the context of the passage as a whorl to connote a form of  unsurpassed elegance of the people or person involved.

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A 72° sector in a circle has an area of 16. 4π yd². What is the area of the circle? use 3. 14 for pi. Enter your answer as a decimal in the box.

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Answer:

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Identify one piece of evidence that moser uses in the passage to support his claim regarding nationalist perceptions of liberal economic policies.

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One piece of evidence that moser uses in the passage to support his claim regarding nationalists is; That the US government had to develop protectionist policies to tackle the attack on economic liberalism

What is the piece of evidence?

This question is taken from an article written by John.E.Moser about how global commerce which was a very important characteristic of economic liberalism, was severely under attack and how the crisis spread through to other countries.

Finally, The U.S government made use of protectionist policies that helped in safeguarding its economy, and other governments imposed retaliatory tariffs which made the crisis worse.

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Clarify why is it important to present your answers according to the marks allocated to assessment question.

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It is necessary  to present your answers according to the marks allocated to assessment question so as to get awarded full marks

Assessment and Presentation of answers.

Assessment is an integral part of the teaching that shows if the learning process has been achieved to estimate the student’s ability to demonstrate  full Knowlege of the lesson or subject taught.

Examiners set questions and allocate marks according to how they expect the questions to appear.

it is important that students present answers accordingly so as not to miss on the full marks.

for example. if a questions asks "Explain the processes of water purification" with 30marks allocated.Upon answering,  and a student decides to list instead of explaining, Then  he or she will not be awarded the full marks.

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A store owner wants to make a candy mix that sells for $1.

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is this a trick question like for the sat teststs

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Answer:

eight times 10 to the minus six meters.

Explanation:

What is the job of researchers in the astronaut microbiome project

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Answer:

to determine how the composition of the human microbiome changes during long-term space exploration and to evaluate its potential impact on Astronauts' health.

Explanation:

hope this helps

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The three skills which can assist a school leaver to adapt to the world of work in 2023 are;

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The number of credits awarded for the CLEP exam is determined by:
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Answer: The college or university

Explanation:

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What is College Board?

In order to increase access to higher education, the College Entrance Examination Board (CEEB), a nonprofit American organization, was founded in December 1899.

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To encourage college readiness and as a part of the college admissions process, K–12 and post–secondary educational institutions use standardized examinations and curriculum created and administered by The College Board.

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Answer:

Put it in a clean sink w hike running COLD water on it until thawed

What is the difference between an introduced and an invasive species?(1 point).

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Answer:

An introduced species is not necessarily harmful to the environment; an invasive species has a negative effect.

Explanation:

I hope this helps you!

Campsites f and g are on opposite sides of a lake. A survey crew made the measurements shown on the diagram. What is the distance between the two campsites? the diagram is not drawn to scale. The triangles are proportional.

Answers

Given that the two triangles formed are similar, the distance between the two campsites is: 37.8 m.

What are Similar Triangles?

Triangles that are similar have corresponding side lengths that are proportional.

Thus:

Let x represent the distance between the two campsites

Since the two triangles formed are similar to each other, we have the following:

42/x = 82/73.8

x = (73.8 × 42)/82

x = 37.8 m

Thus, given that the two triangles formed are similar, the distance between the two campsites is: 37.8 m.

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Answer:

Explanation:

The correct answer is 42.3 (A)

47x=82/73.8

x=73.8x47/82

 =42.3

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Answer:

3.1%

Explanation:

after 17 years

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Answer:

Each element has a unique arrangement of electrons.

Explanation:

i just took the test

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Answer:

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The answer is true :3

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Answer:

person A

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Do you think that joyce has the ability to beautifully describe scenery? why or why not? answer in complete sentences.

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Yes, I do think that Joyce has the ability to beautifully describe scenery. The best words that shows the descriptions is “show” don't tell.

The way a person show their writing is one that uses the elements of human senses such as seeing, hearing, tasting, feeling, etc.

What is Scenery?

Scenery is known to be the outlook or features of a said landscape that is known to exist in a given area.

This is a term that is used to describe all the appearance of a landscape based on how they are looking and their aesthetic taste.

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A team of 17 volleyball players needs to choose three players to refill the water cooler. How many different ways can the players be chosen?

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680 i think I’m sorry if it’s wrong
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