Consider a bond (with par value = $1,000) paying a coupon rate of 10% per year semiannually when the market interest rate is only 7% per half-year. The bond has three years until maturity. a. Find the bond's price today and six months from now after the next coupon is paid. (Round your answers to 2 decimal places.)

The bond price today is $904.67 , while it is $918.00  in six months's time

Step-by-step explanation:

In calculating the price , I discounted the future cash flows of the bond by the discounting factor given as (1+r)^n, where n is the period of cash flow, r is the semi-annual rate of return at 7%.

The future cash flows are simply receipts of coupon interest and the principal at redemption.

Find attached for more details.

answer: the price of one pound cabbage = $ 0.8

the point (10,8) represents that the cost of 10 pounds cabbage is $ 8

step-by-step explanation:

since, here is a proportional relation between the number of pounds of cabbage (x) and the price in dollars (y).

therefore, we can write,

⇒ y = k x

where k is the constant of proportionality.

now, point (5,4) is in the line.

thus, it will satisfies the above equation of line.

⇒ 4 = 5 k

⇒ k = 0.8

thus, the equation of the line is,

y = 0.8 x

a) for x = 1,

y = 0.8

therefore, the cost of one pound of cabbage is 0.8 dollars.

b) in the below graph (10,8) represents that the cost of 10 pounds of cabbage is 8 dollars.