A $3,000 bond has coupons at a rate 12% paid semi-annually and matures on December 1st, 2025 at $3,200. Find the practical clean and dirty book values of this bond on October 15th, 2020 to yield 6% convertible semi-annually.

Clean price is $3,977.22

Dirty price = $4110.99

Step-by-step explanation:

We proceed as follows;

Semiannual coupon payments = $3000* 12%/2 = 6% * 3,000 = 6/100 * 3,000 = $180

Coupons are paid on 1st June and 1st December every year(semi-annually means twice a year, every 6 months)

No. of payments remaining = 11 (1 payment in 2020 on 1st December,2020 and 2 in each of the following 5 years)

Semiannual Yield = 6%/2 =3%

The clean price of the bond is given by

P = 180/1.03+ 180/1.03^2++180/1.03^11+ 3200/1.03^11

=180/0.03*(1-1/1.03^11)+3200/1.03^11

=$3977.22

Dirty price = clean price +accrued interest

Accrued Interest = Interest from 1st June , 2020 to 1st December,2020

= no of days from 1st June to 15th October/no of days from 1st June to 1st December * $180

= 136/183*$180

=$133.77

So, Dirty price = $3977.22+$133.22 = $4110.99

answer: a video game has three difficulty levels: easy, medium, and expert. the game's scoring works in such a way that a player has to score a fixed number of points to advance to the next level, and then the scoring starts over. the total score needed to clear all three difficulty levels is 7,500. two times the number of points needed to clear the easy level is 500 more than the number of points needed to clear the medium level. twice the number of points needed to clear the medium difficulty level is 1,500 more than the number of points needed to clear the expert level. if x, y, and z represent the easy, medium, and expert levels, respectively, and a is the coefficient matrix of the system of equations modeling this situation, identify the inverse matrix, a-1, and the solution matrix, x, of the system of equations.

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