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A 1300 bond with semi-annual coupons at i(2) = 6% matures at par on October 15, 2020. The bond is purchased on June 28, 2005 to yield the investor (2) = 7%. What is the purchase price? Assume simple interest between bond coupon dates and note that: Round your answer to two decimal places. Date Day of the Year April 15 105 June 28 179 October 15 288

A 1300 bond with semi-annual coupons at i(2) = 6% matures at par on October 15, 2020. The bond is purchased on June 28, 2005 to yield the investor (2) = 7%. What is the purchase price? Assume simple interest between bond coupon dates and note that: Round your answer to two decimal places. Date Day of the Year April 15 105 June 28 179 October 15 288

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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A 1300 bond with semi-annual coupons at i(2) = 6% matures at par on October 15, 2020. The bond is purchased on June 28, 2005 to yield the investor (2) = 7%. What is the purchase price? Assume simple interest between bond coupon dates and note that: Round your answer to two decimal places. Date Day of the Year April 15 105 June 28 179 October 15 288
Transcribed Image Text:A 1300 bond with semi-annual coupons at i(2) = 6% matures at par on October 15, 2020. The bond is purchased on June 28, 2005 to yield the investor (2) = 7%. What is the purchase price? Assume simple interest between bond coupon dates and note that: Round your answer to two decimal places. Date Day of the Year April 15 105 June 28 179 October 15 288
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