Question

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.

Answer #1

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.

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 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 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 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 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 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. 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 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 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

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