6. [HW] $100,000 bond redeemable at par on October 1, 2038, is purchased on January 15, 2017. Interest is 5.9% payable semi-annually and the yield is 9% compounded semi- annually. a) What is the cash price of the bond? b) What is the accrued interest? c) What is the purchase price? SDT = CPN = RDT = RV = АСТ 2/Y YLD = PRI = Al = a) $70,634.65 b) $1718.13 c) 72,352.78
6. [HW] $100,000 bond redeemable at par on October 1, 2038, is purchased on January 15, 2017. Interest is 5.9% payable semi-annually and the yield is 9% compounded semi- annually. a) What is the cash price of the bond? b) What is the accrued interest? c) What is the purchase price? SDT = CPN = RDT = RV = АСТ 2/Y YLD = PRI = Al = a) $70,634.65 b) $1718.13 c) 72,352.78
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![6. [HW] $100,000 bond redeemable at par on
October 1, 2038, is purchased on January 15,
2017. Interest is 5.9% payable semi-annually
and the yield is 9% compounded semi-
annually. a) What is the cash price of the
bond? b) What is the accrued interest? c)
What is the purchase price?
SDT :
CPN =
RDT =
RV =
АСT 2/Y
YLD =
PRI =
Al =
a) $70,634.65 b) $1718.13 c) 72,352.78](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F09bfcfe1-5112-4e27-8168-4a70453c39b6%2F4e20e7da-ba84-4a4b-85d6-794a0b7e9d16%2Fyhk16n_processed.png&w=3840&q=75)
Transcribed Image Text:6. [HW] $100,000 bond redeemable at par on
October 1, 2038, is purchased on January 15,
2017. Interest is 5.9% payable semi-annually
and the yield is 9% compounded semi-
annually. a) What is the cash price of the
bond? b) What is the accrued interest? c)
What is the purchase price?
SDT :
CPN =
RDT =
RV =
АСT 2/Y
YLD =
PRI =
Al =
a) $70,634.65 b) $1718.13 c) 72,352.78
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