General motors’s bonds have 10 years remaining to maturity. interest is paid annually, the bonds have a $ 1,000 par value, and the coupon rate is 8 percent. the bonds have a yield to maturity of 9 percent. what is the current market price of these bonds?

Present value of the bonds 935.82

Explanation:

We have to calculate the present value of the coupon interest service

and the face value redeem at maturity.

C = 1000 x 0.8 = 80

rate = 9%

time = 10

PV = 513.41262

Face Value = 1000

rate = 0.09

PV = 422.410807

Present value of the bonds

annuity PV + face PV = market price

513.41262 + 422.410807 = 935.823427 = 935.82 market value

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi