Union local school district has a bond outstanding with a coupon rate of 3.3 percent paid semiannually and 20 years to maturity. The yield to maturity on this bond is 3.7 percent, and the bond has a par value of 10000. What is the price of the bonds?

$9,438.22

Explanation:

For computing the price of the bond we need to apply the present value formula i.e be to shown in the attachment below:

Given that,  

Future value = $10,000

Rate of interest = 3.7%  ÷ 2 = 1.85%

NPER = 20 years  × 2 = 40 years

PMT = $10,000 × 3.3% ÷ 2 = $165

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the price of the bond is $9,438.22

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order: