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4. Douglas purchased a $10,000, 8% quarterly bond at face value. He held the bond for five years, received twenty coupon payments, and then sold it. What was the sales price of the bond if he earned a yield of 12% compounded quarterly on his investment?

4. Douglas purchased a $10,000, 8% quarterly bond at face value. He held the bond for five years, received twenty coupon payments, and then sold it. What was the sales price of the bond if he earned a yield of 12% compounded quarterly on his investment?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4. Douglas purchased a $10,000, 8% quarterly bond at face value. He held the bond for five years, received twenty coupon payments, and then sold it. What was the sales price of the bond if he earned a yield of 12% compounded quarterly on his investment?
Transcribed Image Text:4. Douglas purchased a $10,000, 8% quarterly bond at face value. He held the bond for five years, received twenty coupon payments, and then sold it. What was the sales price of the bond if he earned a yield of 12% compounded quarterly on his investment?
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