How do you key in -pv(5.5%.50,50,1000) in order to get $915.34? Do you multiply all the...

Question

Question

How do you key in -pv(5.5%.50,50,1000) in order to get $915.34? Do you multiply all the numbers together?

business finance

Answer 1

Answer #1

-pv(5.5%.50,50,1000) is an excel formula where,

5.5% represents coupon rate

50 represents number of periods or maturity

50 represents the coupon amount for each period and

1000 represents face value of the bond

and as per the Present value formula

PV = coupon/(1+ rate)^1 + coupon/(1+ rate)^2 +.......................................+ coupon/(1+ rate)^n

PV = 50/(1.055)^1 + 50/(1.055)^2+.................................+ 50/(1.055)^50

PV = 915.34

this is how the formula calculates the value

Answer 2

Similar Homework Help Questions

How do you multiply this to get the answer on the right (24500,34000,41500)? Please show solution....

How do you multiply this to get the answer on the right (24500,34000,41500)? Please show solution. Topic is Markov Chain. 「0.75 0.20 0.051 T 20000 30 00v JD 000 0.I5 0.7S 0.10 0.10 0.LS 0.15
How do you get to this answer? W4.06 STATIC EQUILIBRIUM-Ladders KEY Note: all walls are frictionless...

How do you get to this answer? W4.06 STATIC EQUILIBRIUM-Ladders KEY Note: all walls are frictionless (μ-0) and all floors are rough (μ#0), unless other [31 A 10 meter long ladder leans against the wall as shown. If the ladder weighs 400 N and μFloor-04. how far up the ladder could a 600 N person climb before the ladder starts to slip? 5.55 meters up the ladder. 3.13°
What would you multiply "moles of iodine" by to get the units "grams of iodine"? What...

What would you multiply "moles of iodine" by to get the units "grams of iodine"? What would you multiply "atoms of sulfur" by to get the units "moles of sulfur"? What would you multiply "moles of rubidium" by to get the units "atoms of rubidium"? How many grams of F are there in a sample of F that contains the same number of moles as a 34.0 gram sample of Al?

You know that to multiply a binary integer by 16, all you have to do is...

You know that to multiply a binary integer by 16, all you have to do is shift the value over by 4 bit positions -- which in hardware can literally be done without a function unit simply by connecting bus wires such that bit k goes to position k+4 and positions 0-3 are connected to ground. Well, it's harder to multiply by 15. However, by using Booth's algorithm, a single 32-bit add/subtract ALU is sufficient to implement multiply of a...
What would you multiply "grams of iodine" by to get the units "atoms of iodine" ?...

What would you multiply "grams of iodine" by to get the units "atoms of iodine" ? What would you multiply "grams of sulfur" by to get the units "atoms of sulfur" ? What would you multiply "atoms of rubidium" by to get the units "grams of rubidium" ?
3. Consider the following relations: salesperson(emp#, name, age, salary); key is emp# order(order#, cust#, emp#, amount);...

3. Consider the following relations: salesperson(emp#, name, age, salary); key is emp# order(order#, cust#, emp#, amount); key is order# customer(cust#, name, city, industry-type); key is cust# Show the SQL expressions for the following queries: a. Get all the information of customers who have placed at least one order b. Get all the information of customers who have placed more than one order. c. Get all the information of customers who have placed an order with the salesperson, Scott Tiger. d....

Create a new class MathOP2 (MathOP2.java) that Inherits from MathOP You need to add multiply method...

Create a new class MathOP2 (MathOP2.java) that Inherits from MathOP You need to add multiply method and divide method, both methods accepts two parameters and return a value. Create a test program with documentation to test all operators (at least 4) The TestMathOP should do the following Enter the First number >> 5.5 Enter the Second Number >> 7.5 The sum of the numbers is 13 The subtract of the two numbers is -2.00 Do...
How many times do you need to toss a fair coin in order to get 100...

How many times do you need to toss a fair coin in order to get 100 heads with probability at least 0.9?
1.What would you multiply "atoms of argon" by to get the units "grams of argon" ?...

1.What would you multiply "atoms of argon" by to get the units "grams of argon" ? atoms Ar = g Ar (number) (unit) (number) (unit) (number) (unit) (number) (unit)2.What would you multiply "grams of potassium" by to get the units "atoms of potassium" ? What would you multiply "grams of potassium" by to get the units "atoms of potassium"? (number) (unit) (number) (unit) g K -atoms K (number) (unit) (number) (unit)

please show how to get the pv either in sceduel or finacial calculator On Jan 1...

please show how to get the pv either in sceduel or finacial calculator On Jan 1 2019 LCM2 issued a 7 year $700,000 Bond paying 8% interest semi-annually. The market rate for bonds of similar risk and maturity was 11%. LCM uses the straight-line method amortization. ; 2= 5.5 Journalize the LCM2 Issue PV = 700,- ord 281 x 7001 - 41922- 28000 per year Jan 1 Bond Issue Tool - 7x2 = 14 ye 1-2 = 5. Journalize the...