A bond with a face value of $7000 and a 6.4% interest rate (compounded semiannually) will mature in 20 years. What is a fair price to pay for the bond today? A fair price to buy the bond at would be $ (Do not round until the final answer. Then round to the nearest cent as needed.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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5.2.39
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A bond with a face value of $7000 and a 6.4% interest rate (compounded semiannually) will mature in 20 years. What is a fair price to pay for the bond today?
A fair price to buy the bond at would be $.
(Do not round until the final answer. Then round to the nearest cent as needed.)
Transcribed Image Text:5.2.39 Question Help A bond with a face value of $7000 and a 6.4% interest rate (compounded semiannually) will mature in 20 years. What is a fair price to pay for the bond today? A fair price to buy the bond at would be $. (Do not round until the final answer. Then round to the nearest cent as needed.)
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