A 10 – year bond with face amount 10,000 that redeems for 12,000 and that pays semiannual coupons provides a nominal annual yield of 7.62% if purchased for 10,172.75. If the bond is purchased for P and redeems at par, the annual yield is the same. Calculate P. (A) 9226 (B) 9314 (C) 10,000 (D) 10,686 (E) 10,774

A 10 – year bond with face amount 10,000 that redeems for 12,000 and that pays semiannual coupons provides a nominal annual yield of 7.62% if purchased for 10,172.75. If the bond is purchased for P and redeems at par, the annual yield is the same. Calculate P. (A) 9226 (B) 9314 (C) 10,000 (D) 10,686 (E) 10,774

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter22: Corporations: Bonds

Section: Chapter Questions

Problem 3MC

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A 10 - year bond with face amount 10,000 that redeems for 12,000 and that pays semiannual coupons provides a nominal annual yield of 7.62% if purchased for 10,172.75. If the bond is purchased for P and redeems at par, the annual yield is the same. Calculate P. (A) 9226 (B) 9314 (C) 10,000 (D) 10,686 (E) 10,774 Plz solve fast
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