Help pls thanks! KAn annuity is set up that will pay $1,500 per year for ten years. What is the present value (PV) of this annuity giventhat the discount rate is 9%?OA. $9,626O B. $11,551O C. $5,776OD. $13,476 ←The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 15 years. Thebond certificate indicates that the stated coupon rate for this bond is 8.6% and that the coupon payments are to bemade semiannually.Assuming the appropriate YTM on the Sisyphean bond is 9.7%, then the price that this bond trades for will beclosest to:OA. $1,097OB. $731OC. $1,280OD. $914F

Answered: An annuity is set up that will pay…

An annuity is set up that will pay $1,500 per year for ten years. What is the present Value (P that the discount rate is 9%? OA. $9,626 OB. $11,551 OC. $5,776 OD. $13,476

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 13P

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Question

Help pls thanks!

K
An annuity is set up that will pay $1,500 per year for ten years. What is the present value (PV) of this annuity given
that the discount rate is 9%?
OA. $9,626
O B. $11,551
O C. $5,776
OD. $13,476

←
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 15 years. The
bond certificate indicates that the stated coupon rate for this bond is 8.6% and that the coupon payments are to be
made semiannually.
Assuming the appropriate YTM on the Sisyphean bond is 9.7%, then the price that this bond trades for will be
closest to:
OA. $1,097
OB. $731
OC. $1,280
OD. $914
F

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