need help with a and b pls

at maturity) DO IT! 10.46 Determining the Price of Bonds a. The interest paid on a semi-annual basis will be $500,000 X 2%= $10,000. Assuming maturity in five years after 10 interest payment periods have elapsed, we can calculate the present value of the bond as follows: 1. Assuming a market interest rate of 5% or 2.5% semi-annually, the present value of the maturity amount (face value) is: $500,000 X 0.78120 (n = 10,1 = 2.5%) $390,600 The present value of the semi-annual interest payments is: $10,000 X 8.75206 (n = 10.1 = 2.5%) 87,521 $478.121 2. Assuming a market interest rate of 3% or 1.5% semi-annually, the present value of the maturity amount (face value) is: $500,000 X 0.86167(1 = 10,1 = 1.596) $430,835 The present value of the semi-annual interest payments is: 222 $10,000 x 9.22218 (n = 10,1 = 1.5%) 92,222 $523,057 b. Assuming maturity in 10 years after 20 interest payment periods have elapsed, we can calculate the present value of the bond as follows: 1. Assuming a market interest rate of 5% or 2.5% semi-annually, the present value of the maturity amount (face value) is: $500,000 X 0.61027 (1 = 20,1 = 2.5%) $305,135 The present value of the semi-annual interest payments is: $10,000 x 15.58916 (n = 20,1 = 2.5%) 155.892 $461,027 2. Assuming a market interest rate of 3% or 1.5% semi-annually, the present value of the maturity amount (face value) is: $500,000 X 0.74247 (n = 20,1 = 1.5%) $371,235 The present value of the semi-annual interest payments is: $10,000 x 17.16864 (n = 20,1 = 1.5%) 171.686 S542.921 at maturity) DO IT! 10.46 Determining the Price of Bonds a. The interest paid on a semi-annual basis will be $500,000 X 2%= $10,000. Assuming maturity in five years after 10 interest payment periods have elapsed, we can calculate the present value of the bond as follows: 1. Assuming a market interest rate of 5% or 2.5% semi-annually, the present value of the maturity amount (face value) is: $500,000 X 0.78120 (n = 10,1 = 2.5%) $390,600 The present value of the semi-annual interest payments is: $10,000 X 8.75206 (n = 10.1 = 2.5%) 87,521 $478.121 2. Assuming a market interest rate of 3% or 1.5% semi-annually, the present value of the maturity amount (face value) is: $500,000 X 0.86167(1 = 10,1 = 1.596) $430,835 The present value of the semi-annual interest payments is: 222 $10,000 x 9.22218 (n = 10,1 = 1.5%) 92,222 $523,057 b. Assuming maturity in 10 years after 20 interest payment periods have elapsed, we can calculate the present value of the bond as follows: 1. Assuming a market interest rate of 5% or 2.5% semi-annually, the present value of the maturity amount (face value) is: $500,000 X 0.61027 (1 = 20,1 = 2.5%) $305,135 The present value of the semi-annual interest payments is: $10,000 x 15.58916 (n = 20,1 = 2.5%) 155.892 $461,027 2. Assuming a market interest rate of 3% or 1.5% semi-annually, the present value of the maturity amount (face value) is: $500,000 X 0.74247 (n = 20,1 = 1.5%) $371,235 The present value of the semi-annual interest payments is: $10,000 x 17.16864 (n = 20,1 = 1.5%) 171.686 S542.921