A $140,000 bond bearing interest at 5% payablo semi annually is bought nina years boformaturity to yiold 4.5% compoundod quartarly. If tho bond is redoomabla at par, what is thepurchase price?

The bond pays interest semi-annually at a rate of 5%. Therefore, the semi-annual interest payment…

Answered: A $140,000 bond bearing interest at 5%…

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 $140,000 bond bearing interest at 5% payablo semi annually is bought nina years bofor maturity to yiold 4.5% compoundod quartarly. If tho bond is redoomabla at par, what is the purchase price?