You want to invest $25,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that pays a nominal rate of 4% that is compounded bimonthly (every two months). What is the effective rate of return that you will earn from this investment

Answers

Answer 1

If you want to invest $25,000 and are looking for safe investment options. The effective rate of return that you will earn from this investment is  4.08%.

How to find the Effective rate of return?

Given data:

Investment = $25,000

Rate = r = 8%

Number of months = 12 × 2 = 24 months (Bimonthly)

Now let find the Effective rate of return

Effective rate of return = (1  + 0.04/24)^24 -1

Effective rate of return = 4.08%

Therefore we can conclude that the Effective rate of return is 4.08%.

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Related Questions

What is meant by the phrase nonverbal communication and what form of nonverbal communication do you think is misunderstood the most by people? in a 200 word​

Answers

Answer:

See the explanation below.

Explanation:

Nonverbal communication involves the transfer of messages or signals utilizing nonverbal platforms such as eye contact, facial expressions, gestures, posture, and body language. It entails the utilization of social cues, kinesics, distance, physical environments/appearance, voice, and touch, among other things.

I think that gesture is the most misinterpreted form of nonverbal communication. Gesture refers to the movement of a body component, especially the hand or the head, to convey a message or meaning.

Gesture is the most misinterpreted form of nonverbal communication due to the fact that the meaning of particular gestures varies greatly throughout cultures. While the hand-held “OK” sign, for example, normally sends a positive message in English-speaking countries, it is deemed offensive in Germany, Russia, and Brazil. As a result, it's critical to be cautious about how you utilize gestures in order to avoid misinterpretation.

anyone here earn money from brainly and how
please guide me

Answers

Hi, you've asked an incomplete question. However, I assumed you want to know what Brainly platformed.

Explanation:

It is interesting to note that the Brainly platform is designed specifically for students to learn from their peers mostly free of charge, and it allows them to find answers to homework questions.

Heritage, Inc., had a cost of goods sold of $44,721. At the end of the year, the accounts payable balance was $8,253. How long on average did it take the company to pay off its suppliers during the year

Answers

Answer:

Account payable days = 67.36 days

Explanation:

The payable days is the average length of time it takes a business to settle its account payable. It is calculated as thus;

Account payable days = Average account payable / Cost of goods sold × 365

Account payable = $8,253/44,721 × 365

Account payable = 67.36

Therefore, it will take Heritage about 67.36 days to settle its account payable

____________ is the process of identifying and assessing the volume and sentiment of what is being said about a company, individual, product, or brand. Digital marketing Visual analytics

Answers

Answer:

d) Social media monitoring

Explanation:

Social media monitoring includes the tracking of brand i.e. online and the responses also. You should check and keep your brand on the top of the message prior it become viral for the reason i.e. not right. Also it would help in maintaining the positive brand between the consumers and influencers

So, as per the given situation, it is a social media monitoring

The price of strawberries decreases from $4.10 to $2.50 per pound. When this happens, the amount of strawberries sold increases from 550 pounds to 600 pounds. What is the value of the gain in consumer surplus that occurred

Answers

Answer:

$80

Explanation:

Given that the value of the gain in consumer surplus is the value emanating from the purchase made at price less than the price the consumer is willing to pay. The value of consumer surplus rises as the price of a good falls and falls as the price of a good rises.

Hence, in this case, the price of strawberries decreases from $4.10 to $2.50 per pound. We have a value surplus of $1.6 per pound.

However, since the amount of strawberries sold increases from 550 pounds to 600 pounds we have a consumer surplus of 50 pounds.

Therefore, the total value of the gain in consumer surplus that occurred is $1.6 × 50 = $80.

Hence, the correct answer is $80

assume that a compan operates a fleet of limousines if a limo is driven 80,000 miles during a year its average is 25 cents per mile. driven only 60,000 miles operating cost is 30 cents per mile high low method, what is the estimated fixed cost per year

Answers

Answer:

The answer is "$12000".

Explanation:

Calculating the total cost:

when 80,000 miles[tex]=(80,000\times 0.25)=\$20,000[/tex]

when 60,000 miles[tex]=(60,000\times 0.3)=\$18000[/tex]

[tex]\text{Calculating the per mile variable cost} =\frac{[\text{Total cost of highest level-Total cost of lowest level}]}{(Highest \ level-Lowest \ level)}[/tex]

                                                           [tex]=\frac{(20,000-18000)}{(80,000-60,000)}\\\\=\frac{(2,000)}{(20,000)}\\\\=\frac{(1,000)}{(10,000)}\\\\=\frac{(1)}{(10)}\\\\=$0.1 / mile[/tex]

So, the total fixed cost:

[tex]=20,000-(80,000\times 0.1)\\\\=20,000-8,000\\\\=\$12,000[/tex]

What will appear under a misspelled word in Word Online?

An arrow
A zigzag line
An exclamation point
A bold line

Answers

Answer:

A red Zigzag line

Explanation:

I think

A zigzag line

Explanation:

Crane Company makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions $0.60 $ 4000 Shipping 1.20 Advertising 0.30 Executive salaries 30000 Depreciation on office equipment 7000 Other 0.35 18000 Expenses are paid in the month incurred. If the company has budgeted to sell 6000 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October?

Answers

Answer:

$14,700

Explanation:

Calculation to determine how much is the total budgeted variable selling and administrative expenses for October

Using this formula

Total budget variable selling and administrative =(Sales commissions+Shipping+Advertising+Other)*Budgeted umbrellas

Let plug in the formula

Total budget variable selling and administrative = ($0.60 + 1.20 + 0.30 + 0.35)*6,000

Total budget variable selling and administrative= $2.45*6,000

Total budget variable selling and administrative= $14,700

Therefore the total budgeted variable selling and administrative expenses for October is $14,700

Growing, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $3.40. You believe that dividends will grow at a rate of 19.0% per year for two years, and then at a rate of 7.0% per year thereafter. You expect the stock will sell for $17.17 in two years. You expect an annual rate of return of 22.0% on this investment. If you plan to hold the stock indefinitely, what is the most you would pay for the stock now

Answers

Answer:

$18.09

Explanation:

The computation of the current stock price is shown below:

Particulars   Dividend or amount   PVIF at 22%       Present value

D1                  $4.05                        0.820       $3.32          

($3.40 × 1.19)

D2                 $4.81                         0.672         $3.23

($4.05 × 1.19)

Stock price in 2 years $17.17         0.672         $11.54

Current stock price                                            $18.09

"Standard Cost Data per 1 Unit Quantity Price Direct Material 3 lbs $2.00/lb Direct Labor 2 hrs $4.00/hr Actual Data: Units produced 20 Material purchase 100 lbs at $2.25 per lb Material usage 90 lbs Direct Labor 30 hrs; total cost $123 Compute all standard costs and variances for DM & DL. Show all computations."

Answers

Answer and Explanation:

The computation is shown below:

The Standard cost for 20 units is  

Material (20 units × 3lbs × $2lb) $120

Direct labor (20 units  × 2lbs × $4) $160

Total standard cost $280

Now  

Direct material price variance = (Actual price -Standard price) × Actual quantity

= (2.25-2.00) × 90

=22.5 Unfavorable

Direct material quantity variance = (Actual quantity- Standard quantity) × Standard price  

=(90-20x3) × 2

= $60 unfavorable  

Direct material cost variance =Direct material price variance + Direct material quantity variance

=22.5 UF+$60UF

=82.50UF

Direct labor Rate variance = (Actual rate -Standard rate)  × actual hours  

= (4.10-4.00) × 30 hrs

= $3 Unfavorable  

Actual rate = $123 ÷ 30 hrs

= $4.10

Direct labor Quantity variance = (Actual hours -Standard hours ) × Standard rate

=(30-20 × 2) × 4

=$40 favorable  

Direct labor cost variance =Direct labor Rate variance+Direct labor Quantity variance

=$3 unfavorable  + $40 favorable  

=$37 favorable

The Quick Buck Company is an all-equity firm that has been in existence for the past three years. Company management expects that the company will last for two more years and then be dissolved. The firm will generate cash flows of $450,000 next year and $790,000 in two years, including the proceeeds from the liquidation. There are 20,000 shares of stock outstanding and shareholders require a return of 12 percent.

Required:
What is the current price per share of the stock?

Answers

Answer:

$53.09

Explanation:

Calculation to determine current price per share of the stock

First step is to determine the Dividend per share in Year 1

Using this formula

Dividend per share in Year 1 = Cash flow generated next year / Number of shares

Let plug in the formula

Dividend per share in Year 1 == $450,000 / 20,000

Dividend per share in Year 1 == $ 22.5

Second step is to determine the Dividend per share in Year 2 using this formula

Dividend per share in Year 2 = Cash flow generated in two years / Number of shares

Let plug in the formula

Dividend per share in Year 2 = $790,000 / 20,000

Dividend per share in Year 2 = $39.5

Dividend per share in Year 2 =$40 Approximately

Now let determine the Share price today using this formula

Share price today = [ Dividend in Year 1 / (1 + Required rate of return) ] + [ Dividend in Year 2 / (1 + Required rate of return)2 ]

Let plug in the formula

Share price today = [22.5 /(1+.12)]+ (40 / 1.12^2

Share price today = (22.5 /1.12) + (40 / 1.12^2)

Share price today =$20.09+(40/1.25)

Share price today =$20.09+32

Share price today = $ 53.09

Therefore current price per share of the stock

Is $53.09

On July 1, 2019, Stacy Company signed a $140,000, one-year, 6 percent note payable. The principal and interest will be paid on June 30, 2020. How much interest expense should be reported on the income statement for the year ended December 31, 2019

Answers

Answer:

Stacy Company

The amount of interest expense that should be reported on the income statement for the year ended December 31, 2019 is:

= $4,200.

Explanation:

a) Data and Calculations:

6% Notes Payable = $140,000

Date of issuance = July 1, 2019

Interest rate per annum = 6%

Total interest expense for the one year = $8,400 ($140,000 * 6%)

Interest expense for the half-year = $4,200 ($140,000 * 6% * 1/2)

b) Therefore, the cash payment on June 30, 2020 will amount to $148,400 ($140,000 + $8,400)

Please answer the question posted in the image

Answers

Answer:

its c

Explanation:

For most​ firms, the cost of capital decreases to a low point as the firm​ ________ debt financing. At some point beyond this optimal​ level, the cost of capital increases as the amount of debt​ ________.

Answers

Answer:

increases; decreases

Explanation:

In accounting, cost of capital can be regarded as cost of a company's funds which are "debt and equity" . It could also be from an investor's point of view "the required rate of return required on existing securities" of company's portfolio . cost of capital is utilized in

evaluation of new projects of a company. Debt financing which is regarded as one that take place when there is a raise of money by a company through the selling of debt instruments to investors. Debt financing takes place when fixed income products like bonds is sold by a firm. It should be noted that For most​ firms, the cost of capital decreases to a low point as the firm​ increases debt financing. At some point beyond this optimal​ level, the cost of capital increases as the amount of debt​ decreases

Babble, Inc., buys 405 blank cassette tapes per month for use in producing foreign language courseware. The ordering cost is ​$15.00. Holding cost is ​$0.25 per cassette per year. a. How many tapes should Babble order at a​ time?

Answers

Answer:

The appropriate solution is "764".

Explanation:

Given:

Demand per month,

D = 405

or,

  = [tex]405\times 12[/tex]

  = [tex]4860[/tex]

Ordering cost,

S = $15

Holding cost,

H = $0.25

As we know,

⇒  [tex]EOQ=\sqrt{\frac{2DS}{H} }[/tex]

⇒            [tex]=\sqrt{\frac{2\times 4860\times 15}{0.25} }[/tex]

⇒            [tex]=\sqrt{\frac{145800}{0.25} }[/tex]

⇒            [tex]=\sqrt{583200}[/tex]

⇒            [tex]=763.67[/tex]

or,

⇒            [tex]=764[/tex]

sykes company has sales revenue of $585,700. Cost of goods sold before adjustment is $335,900. The company's actual manufacturing overhead is $92,000, while allocated manufacturing overhead is $104,400. What is the actual gross profit

Answers

Answer:

Actual gross profit $262,200

Explanation:

The computation of the actual gross profit is as follows;

Allocated manufacturing overhead

$104,400

Actual manufacturing overhead

$92,000

Over applied manufacturing overhead

$12,400

Unadjusted cost of goods sold

$335,900

Less:

Over applied manufacturing overhead

($12,400)

Adjusted cost of goods sold

$323,500

Sales revenue

$585,700

Less:

Adjusted cost of goods sold

($323,500)

Actual gross profit

$262,200

Describe the role of separation and termination in relation to broader human resources and business objectives

Answers

Answer:

Separation and or termination in HR relates to the cessation of the relationship between employer and employee.

Separation and or termination of the contract may occur in the following ways:

1. Constructive Discharge

2. Firing

3. Layoff

4. Termination by Mutual Agreement

5. Termination with Prejudice

6. Termination without Prejudice

7. Involuntary Termination of employment contract

8. Voluntary Termination of employment contract

9. Wrongful Termination of employment contract

10. Cessation of Temporary Contracts

Explanation:

Regardless of the type of separation or termination which occurs, the business owner and the the HR manager must realize that the HR funnel must never run short of hands with which the organization will attain its goals/objectives.

Recognizing the times lines for contracts that are terminal in nature, anticipating and preparing for sudden separation and planning adequately for these occurrences using HR Planning enables the business to continue to thrive regardless of its rate of turnover.

Cheers

A company purchased $3,300 worth of merchandise. Transportation costs were an additional $290. The company returned $230 worth of merchandise and then paid the invoice within the 3% cash discount period. The total cost of this merchandise is:

Answers

Answer:

the total cost of the merchandise is $3,267.90

Explanation:

The computation of the  total cost of this merchandise is shown below;

Purchase $3,300

Less Purchase return -$230

Purchase less return $3,070

Less: discount at 3% on $3,070 -$92.10

Net purchase cost $2,977.90

Add: transportation $290

Total cost $3,267.90

hence, the total cost of the merchandise is $3,267.90

Coronado Industries has the following costs when producing 100000 units: Variable costs $600000 Fixed costs 900000 An outside supplier has offered to make the item at $4.50 a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $178000. The net increase (decrease) in the net income of accepting the supplier’s offer is

Answers

Answer:

Particulars                                                Amount

Saving in variable costs                          $600,000

Add: Income from lease                          $178,000

Less: Purchase price (100000*$4.50)   ($450,000)

Increase (Decrease) in net income       $328,000

Thus, net income would increase by $628,000.

under FINRA rules, numbered accounts are: A prohibited B permitted with the prior approval of FINRA C permitted if the firm maintains a written statement of the customer attesting to ownership D permitted without any additional supporting documentation

Answers

Answer:

C permitted if the firm maintains a written statement of the customer attesting to ownership

Explanation:

FINRA can be regarded as body which carry out regulation of trading in corporate bonds, as well in equities, and securities futures. All firms that deals with securities are

usually member of FINRA.One of FINRA requirements is that

maintaining an accounts should be in

customer name a numbered account can be maintained in case the firm leave a written statement by the customer in a file which attest to ownership.It should be noted that under FINRA rules, numbered accounts are permitted if the firm maintains a written statement of the customer attesting to ownership.

Use the following information to answer this question.
Bayside, Inc. 2010 Income Statement ($ in thousands)
Net sales $ 6,020
Less: Cost of goods sold 4,240
Less: Depreciation 325
Earnings before interest and taxes $ 1,455
Less: Interest paid 29
Taxable Income $ 1,426
Less: Taxes 499
Net income $ 927
Bayside, Inc. 2009 and 2010 Balance Sheets ($ in thousands)
2009 2010 2009 2010
Cash $ 80 $ 185 Accounts payable $ 1,445 $ 1,745
Accounts rec 940 780 Long-term debt 760 550
Inventory 1,560 2,010 Common stock $ 3,125 $ 3,020
Total $ 2,580 $ 2,975 Retained earnings 820 1,070
Net fixed assets3,570 3,410 Total assets $ 6,150 $ 6,385
Total liab. & equity$ 6,150 $ 6,385
What is the equity multiplier for 2010?
a) 0.52
b) 2.11
c) 2.04
d) 1.04
e) 1.56

Answers

Answer:

The correct option is e) 1.56.

Explanation:

Note: The data in this question are merged together. The complete question with the sorted data is therefore provided before asnwering the question. See the attached pdf file for the complete question with the sorted data.

The explanation of the answer is now provided as follows:

The equity multiplier can be described as a financial leverage ratio gives a measure of the total assets of a company that is financed by the shareholders of the company. This can be calculated using the following formula:

Equity multiplier = Total assets / Total Shareholder's Fund ........... (1)

Where, for Bayside, Inc. in 2010, we have:

Total assets = $6,385

Total Shareholder's Fund = Common stock + Retained earnings = $3,020 + $1,070.00 = $4,090

Substituting the figures into equation (1), we have:

Equity multiplier = $6,385 / $4,090 = 1.56

Therefore, the equity multiplier for 2010 is 1.56 and the correct option is e) 1.56.

Your company has an opportunity to invest in a project that is expected to result in after-tax cash flows of $7,000 the first year, $9,000 the second year, $12,000 the third year, -$8,000 the fourth year, $19,000 the fifth year, $25,000 the sixth year, $28,000 the seventh year, and -$6,000 the eighth year. The project would cost the firm $47,300. If the firm's cost of capital is 18%, what is the modified internal rate of return

Answers

Answer:

The modified internal rate of return is 15.67%.

Explanation:

Note: See the attached excel file for the calculation of the total present value of the after-tax cash flows.

From the attached excel file, we have:

Total present value of the after-tax cash flows = $40,332.66

The modified internal rate of return (MIRR) can be calculated using the following formula:

MIRR = (PV / Outlay)^(1/n) * (1 + r) - 1……………….. (2)

Where;

PV = Total present value of the after-tax cash flows = $40,332.66

Outlay = Absolute value of cost of the project = $47,300

r = cost of capital = 18%, or 0.18

n = number of years = 8

Substitute the values into equation (1) to have:

MIRR = ($40,332.66 / 47,300)^(1/8) * (1 + 0.18) - 1 =  0.1567, or 15.67%

Therefore, the modified internal rate of return is 15.67%.

What is the importance of computer applications in the business domain? How Computer applications support businesses to work ubiquitously? Give valid reasoning with examples.

Answers

Answer:

Explanation:

The importance of computer applications in the business domain is that it allows for the automatization of daily tasks. This is also the reason why businesses that implement such applications are able to work ubiquitously. The software applications are designed to automate all of the tasks that the business needs and perform them quickly and efficiently, if a certain task is not able to be automated then the software still makes completing the task by only requiring user input for the absolutely necessary parts of the task. One example of this would be a logistics application for businesses where inventory is automatically calculated as sales go through and automatically replenished by sending inventory requests to suppliers.

The law of increasing opportunity costs Multiple Choice applies to land-intensive commodities but not to labor-intensive or capital-intensive commodities. results in straight-line production possibilities curves rather than curves that are bowed outward from the origin. may limit the extent to which a nation specializes in producing a particular product. refutes the principle of comparative advantage.

Answers

Answer:

may limit the extent to which a nation specializes in producing of a particular product.

Explanation:

Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.

For instance, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invested the same amount of resources in a salon business or any other business as the case may be.

The law of increasing opportunity costs can be defined as a principle in business which states that, if an organization or business firm continually raise (increase) its level of production, its opportunity cost also increases (rises).

Consequently, this may limit the extent to which a nation or country in any part of the world specializes in producing of a particular product so as to reduce or lower its opportunity cost.

The Acme Company is a perfect competitor in its input markets and its output market. Its average product of labor is at its maximum and equals 30. The marginal revenue product of labor is $300. The price of its output is $

Answers

Answer:

$10

Explanation:

The computation of the price of the output is given below;

As per the given data

At the time when the average product is maximum, so the average product is equivalent to the marginal product

Therefore, AP = MP= 30

MRP = 300

Now

MRP = MP × MR

300= 30 × MR

MR= 300 ÷ 30

= 10

So,

 P= MR= 10

Each sneaker requires 2 hours of direct labor time. Direct labor wages average $15 per hour. Monthly overhead averages $10 per direct labor hour plus fixed overhead of $4,500. What is the direct labor cost budgeted for September

Answers

Answer:

the direct labor cost budgeted is $1,500,000

Explanation:

The computation of the direct labor cost budgeted is given below:

The Direct labor budget for September is

= September production × required no of hours × direct labor wage per hour

= 50,000 × 2hour × $15

= $1,500,000

hence, the direct labor cost budgeted is $1,500,000

When more than one security is sold for a single price and the total selling price is not equal to the sum of the market prices, the cash received is allocated between the securities based on:

Answers

Answer:

Relative market values

Explanation:

Secondary market can be defined as a market where various investors sell and buy securities from other investors.

Some examples of secondary market around the world are New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange (LSE) and National Stock Exchange (NSE).

On the other hand, the primary market refers to the market where these securities that are being sold are issued or created.

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.

In sales and marketing, pricing of products, securities or stocks is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.

Generally, when more than one security is sold for a single price and the total selling price is not equal to the sum of the market prices, the cash received is allocated between the securities based on relative market values.

Vista Company installed a standard cost system on January 1. Selected transactions for the month of January are as follows.
1. Purchased 18,400 units of raw materials on account at a cost of $3.90 per unit. Standard cost was $3.80 per unit.
2. Issued 18,400 units of raw materials for jobs that required 18,100 standard units of raw materials.
3. Incurred 16,000 actual hours of direct labor at an actual rate of $4.10 per hour. The standard rate is $4.60 per hour. (Credit Factory Wages Payable).
4. Performed 16,000 hours of direct labor on jobs when standard hours were 16,190.
5. Applied overhead to jobs at the rate of 100% of direct labor cost for standard hours allowed.
Journalize the January transactions.

Answers

Answer:

1. Dr Raw Materials Inventory $69,920

Dr Materials Price Variance $1,840

Cr Accounts Payable $71,760

2. Dr Work in Process Inventory $68,780

Dr Materials Quantity Variance $1,140

Cr Raw Materials Inventory $69,920

3. Dr Factory Labor $73,600

Cr Labor Price Variance $8,000

Cr Factory Wages Payable $65,600

4. Dr Work in Process Inventory $74,474

Cr Labor Quantity Variance $874

Cr Factory Labor $73,600

5. Dr Work in Process Inventory $143,254

Cr Manufacturing Overhead $143,254

Explanation:

Preparation of the anuary transactions

1. Dr Raw Materials Inventory $69,920

(18,400*$3.80)

Dr Materials Price Variance $1,840 [18,400 x ($3.90 - $3.80)]

Cr Accounts Payable $71,760

($69,920+$1,840)

2. Dr Work in Process Inventory $68,780

(18,100*$3.80)

Dr Materials Quantity Variance $1,140 [$3.80 x (18,400 - 18,100)]

Cr Raw Materials Inventory $69,920

(18,400*$3.80)

3. Dr Factory Labor $73,600

($16,000*$4.60)

Cr Labor Price Variance $8,000

[16,000 x ($4.10 - $4.60)]

Cr Factory Wages Payable $65,600

(16,000*$4.10)

4. Dr Work in Process Inventory $74,474

(16,190*$4.60)

Cr Labor Quantity Variance $874 [$4.60 x (16,000 - 16,190)]

Cr Factory Labor $73,600

($8,000+$65,600)

5. Dr Work in Process Inventory $143,254

($68,780+$74,474)

Cr Manufacturing Overhead $143,254

please share me answer​

Answers

Answer:

Explanation:

debit Unearned Revenue   200

credit        Revenues                   200

To realize one month of insurance premium revenue

Q8 Bernard co. has 9% coupon bonds on the market that have 11 years left to maturity. The bonds will make annual payments. If the YTM on these bonds is 10%, what is the current bond price (in $ dollars)

Answers

Answer: Hello the face value of the bond is missing hence I will assume $1000 as the face value.

$935.05

Explanation:

Assumption:  Face value of Bond = $1,000

Determine the current bond price

Nper = 11 years

YTM ( rate )  = 10%

PMT  = 9% ( coupon rate ) * 1000 ( face value of bond ) = 90

Fv = $1000

apply excel function to determine the current bond price

=PV( 10%,11,90,1000,0) = $935.05  

Note : You can insert the face value you have into the excel function if the value you have isn't $1000 as I assumed

Other Questions
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