Question

Shriver Corp. purchased five $1000 4​% bonds of Simplex Corporation when the market rate of interest...

Shriver Corp. purchased five $1000 4​% bonds of Simplex Corporation when the market rate of interest was ​10%. Interest is paid​ semiannually, and the bonds will mature in six years.

Using the PV function in Excel®​, compute the price Shriver paid​ (the present​ value) for the bond investment.​ (Assume that all payments of interest and principal occur at the end of the period. Round your answer to the nearest​ cent.)

Shriver paid $___ on the bond investment

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Answer #1

Apply PV Formula in Excel

Price of a single Bond is equal to $ 734.10

Therefore total price of the Bond = 734.10*5 = 3670.5

THANK YOU :) HAPPY LEARNING

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