Acompany issued 5%, 20-year bonds with a face amount of $60 million. the market yield for bonds of similar risk and maturity is 6%. interest is paid semiannually. at what price did the bonds sell? (

Total$53.0656 (millions)

Explanation:

We will need to add the present value of the coupon payment

and the present value of the maturity date

present value of the annuity:

C= 60 million x 5% /2 1.5

time= 20 years 2 payment per year =40

rate= 6% annual = 0.06/2 = 0.03 semiannually

PV$34.6722

present value of the bonds:

Maturity60

time40

rate           0.03

PV        $18.3934

The value of the bond will be the sum of both

PV c$34.6722

PV m  $18.3934

Total$53.0656

there are so many examples for that in different areas, like biology experiment carried out in our lab recently.

here's one link :

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.