9) Shin Satellite Corp. issues 10,000 debenture bonds with a face value of $26,000 each and a bond interest rate of 18% per year payable semiannually. The bonds have a maturity date of 10 years. If the market interest rate is 14% per year, compounded semiannually, what is the present worth of one bond to a person who wants to purchase it and earn the market rate? 9)

9) Shin Satellite Corp. issues 10,000 debenture bonds with a face value of $26,000 each and a bond interest rate of 18% per year payable semiannually. The bonds have a maturity date of 10 years. If the market interest rate is 14% per year, compounded semiannually, what is the present worth of one bond to a person who wants to purchase it and earn the market rate? 9)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A $10,000 bond has an interest rate of 6% per year payable quarterly. The bond matures 15 years from now. At a nominal interest rate of 8% per year, compounded quarterly, the present worth of the bond is represented by which of the equations below: PW = 150(P/A, 2%, 60) + 10,000(P/F, 2%, 60) PW = 600(P/A, 2%, 60) + 10,000(P/F, 2%, 60) PW = 600(P/A, 8%, 15) + 10,000(P/F, 8%, 15) PW = 150(P/A, 1.5%, 60) + 10,000(P/F, 1.5%, 60)
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Q.4. Subject :- Economic
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