A company has issued a 20 year bonds, with a face value of $50,000 interest at 8% is paid quarterly. If an investor desires to earn 12% compounded quarterly, what would be the purchase price of the bond? $12, 654.40 $42, 563 $35, 062.60 $ 34, 900.80
A company has issued a 20 year bonds, with a face value of $50,000 interest at 8% is paid quarterly. If an investor desires to earn 12% compounded quarterly, what would be the purchase price of the bond? $12, 654.40 $42, 563 $35, 062.60 $ 34, 900.80
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A company has issued a 20 year bonds, with a face value of $50,000 interest at 8% is paid quarterly. If an investor desires to earn 12% compounded quarterly, what would be the purchase
$12, 654.40
$42, 563
$35, 062.60
$ 34, 900.80
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