Question

A $1000 bond bearing interest at 8% payable semi-annually redeemable at par on February 1, 2020,...

A $1000 bond bearing interest at 8% payable semi-annually redeemable at par on February 1, 2020, was purchased on October 12, 2013, to yield 7% compounded semi-annually. Determine the purchase price.

Math   Advanced-Math   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A $4,500 bond pays interest at 7% compounded semi-annually. The bond is redeemable in 1 year...
A $4,500 bond pays interest at 7% compounded semi-annually. The bond is redeemable in 1 year 6 months, and is purchased to yield 8%. Find the purchase price of the bond. Calculate the premium or discount.
Mr. Simpson buys a $1000 semi-annual coupon bond paying interest at 11.3%/year compounded semi-annually and redeemable...
Mr. Simpson buys a $1000 semi-annual coupon bond paying interest at 11.3%/year compounded semi-annually and redeemable at par in 16 years. Mr. Simpson's desired yield rate is 14.3%/year compounded semi-annually. After 9 years he sells the bond. Interest rates have dropped and the bond is sold to yield a buyer 12.8%/year compounded semi-annually. Determine the sale price.
A $15 000, 8% bond with semi-annual interest coupons redeemable at par in seven years is...
A $15 000, 8% bond with semi-annual interest coupons redeemable at par in seven years is bought to yield 7% compounded semi-annually. Determine the amount of premium or discount.
A $8000 bond that pays 6% semi-annually is redeemable at par in 18 years. Calculate the...
A $8000 bond that pays 6% semi-annually is redeemable at par in 18 years. Calculate the purchase price if it is sold to yield 8% compounded semi-annually.
Mr. Simpson buys a $1000 semi-annual coupon bond paying interest at 6.8%/year compounded semi-annually and redeemable...
Mr. Simpson buys a $1000 semi-annual coupon bond paying interest at 6.8%/year compounded semi-annually and redeemable at par in 12 years. Mr. Simpson's desired yield rate is 9.8%/year compounded semi-annually. How much did he pay for the bond?
A $100,000, 8% bond with interest payable quarterly is redeemable at 98(1/8) in 6 years. What...
A $100,000, 8% bond with interest payable quarterly is redeemable at 98(1/8) in 6 years. What is the purchase price to yield 9% compounded semi-annually? A. $96,470.91 B. $98,704.19 C. $95,846.53 D. $94,470.19 E. $94,740.91
A $85,000 bond with a coupon rate of 7.00%, payable semi-annually, is redeemable in 12.5 years....
A $85,000 bond with a coupon rate of 7.00%, payable semi-annually, is redeemable in 12.5 years. What was the purchase price of the bond, when the yield rate was 5.00% compounded semi-annually? Round to the nearest cent
A bond that has a face value of $1,500 and coupon rate of 2.90% payable semi-annually...
A bond that has a face value of $1,500 and coupon rate of 2.90% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase price of the bond on February 10, 2015 when the yield was 3.65% compounded semi-annually. Round to the nearest cent\
A bond that has a face value of $3,000 and coupon rate of 3.40% payable semi-annually...
A bond that has a face value of $3,000 and coupon rate of 3.40% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase price of the bond on February 10, 2015 when the yield was 3.90% compounded semi-annually. Round to the nearest cent
A $100,000, 8.75% bond with interest payable annually is redeemable at 103 in four years. What...
A $100,000, 8.75% bond with interest payable annually is redeemable at 103 in four years. What is the purchase price to yield 7% compounded quarterly? Select one: a. $107,584.62 b. $107,548.62 c. $105,748.62 d. $106,548.82 e. $108,746.82
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT