3. Penelope purchased a $10,000, 8% quarterly bond, held it for five years, received twenty coupon payments, and redeemed it at par value. What was the purchase price of the bond if she earned a yield of 12% compounded quarterly on her investment?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 3EA: Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the...
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3. Penelope purchased a $10,000, 8% quarterly bond, held it for five years, received twenty coupon payments, and redeemed
it at par value. What was the purchase price of the bond if she earned a yield of 12% compounded quarterly on her
investment?
Transcribed Image Text:3. Penelope purchased a $10,000, 8% quarterly bond, held it for five years, received twenty coupon payments, and redeemed it at par value. What was the purchase price of the bond if she earned a yield of 12% compounded quarterly on her investment?
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