A $2,000 bond had a coupon rate of 4.20% with interest paid semi-annually, Evan purchased this bond when there were 7 years left to maturity and when the market interest rate was 7.20 % compounded semi-annually. She held the bond for 2 years, then sold it when the market interest rate was 3.20% compounded semi-annually. Question 3 of 4 a. Calculate the purchase price of the bond. $1,656.92 $1,218.97 O $455.60
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- A $5,500 bond had a coupon rate of 4.75% with interest paid semi-annually. Sarah purchased this bond when there were 8 years left to maturity and when the market interest rate was 5.00% compounded semi-annually. He held the bond for 4 years, then sold it when the market interest rate was 4.50% compounded semi-annually. a. What was the purchase price of the bond? Round to the nearest cent. b. What was the selling price of the bond? Round to the nearest cent. c. What was Sarah's gain or loss on this investment? (click to select)GainLoss amount was $A $9,000 bond had a coupon rate of 4.50% with interest paid semi-annually. Erin purchased this bond when there were 7 years left to maturity and when the market interest rate was 4.75% compounded semi-annually. He held the bond for 3 years, then sold it when the market interest rate was 4.25% compounded semi-annually. a. What was the purchase price of the bond? b. What was the selling price of the bond? c. What was Erin's gain or loss on this investment?. Please explain all three subparts. I will really upvoteA $2,500 bond had a coupon rate of 6.50% with interest paid semi-annually. Cody purchased this bond when there were 7 years left to maturity and when the market interest rate was 7.50% compounded semi-annually. He held the bond for 2 years, then sold it when the market interest rate was 3.50% compounded semi-annually. Calculate Cody's selling price. a. $739.47 b. C. d. $2,101.82 $2,841.30 $2,397.34
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- Kimberly purchased a $6,500 bond that was paying a 6.75% compounded semi- annually coupon rate and had 3 more years to maturity. The yield rate at the time of purchase was 5.75% compounded semi-annually. a. How much did Kimberly pay for the bond? Round to the nearest cent b. What was the amount of premium or discount on the bond?The saleemi corporation’s is $1,000 bonds pay 9 percent interest rate annually and have 9 years until maturity. You can purchase the bond for $935. A. What is the yield to maturity on this bond? B. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 9 percent ? A. The yield to maturity on the saleemi bonds is Round to two decimal placesThe Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 11 years until maturity. You can purchase the bond for $1,155. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 3 percent?