Respuesta :
Answer:
$170,000
Explanation:
Given:
Amount = $100,000
Interest rate = 7% annually = 7/2 % = 3.5% (semi-annually)
Number of cash flow = 10 year = 10 x 2 = 20 (semi-annually)
Computation :
Cash flow per semi annually = ($100,000 x 3.5) / (100)
= $350,000 / 100
= $3,500
Cash flow for (1 - 19) semi-annual = 3500 x 19 = 66,500
Cash flow for (20th) semi-annual = $100,000 + $3500 = $103,500
Total cash flow = $66,500 + $103,500
= $170,000
The cash flow of a 10-year bond that pays coupon interest semiannually is :
Given Information:
Amount = $100,000
- Interest rate = 7% annually
- Interest rate = 7/2 % = 3.5% (semi-annually)
Number of cash flow = 10 year = 10 x 2 = 20 (semi-annually)
- Cash flow per semi annually = ($100,000 x 3.5) / (100)
- Cash flow per semi annually = $350,000 / 100
- Cash flow per semi annually = $3,500
Cash flow for (1 - 19) semi-annual = 3500 x 19
- Cash flow for (1 - 19) semi-annual = 66,500
Cash flow for (20th) semi-annual = $100,000 + $3500
- Cash flow for (20th) semi-annual = $103,500
Total cash flow = $66,500 + $103,500
Total cash flow = $170,000
The cash flow of a 10-year bond that pays coupon interest semiannually is $170,000.
Learn more :
https://brainly.com/question/20115771referrer=searchResults
