A $4000, 7.0% bond redeemable at par in seven years bears coupons payable annually. Compute the premium or discount and the purchase price if the yield, compounded annually, is 5.5%, 6.5%, and 7.5%. The purchase price of the 5.5% yield bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The 5.5% yield bond is sold at a premium of $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The purchase price of the 6.5% yield bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The 6.5% yield bond is sold at a premium of $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The purchase price of the 7.5% yield bond is $ (Round the final answer to the nearest cent as needed, Round all intermediate values to six decimal places as needed.) The 7.5% yleld bond is sold at a discount of $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
A $4000, 7.0% bond redeemable at par in seven years bears coupons payable annually. Compute the premium or discount and the purchase price if the yield, compounded annually, is 5.5%, 6.5%, and 7.5%. The purchase price of the 5.5% yield bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The 5.5% yield bond is sold at a premium of $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The purchase price of the 6.5% yield bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The 6.5% yield bond is sold at a premium of $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The purchase price of the 7.5% yield bond is $ (Round the final answer to the nearest cent as needed, Round all intermediate values to six decimal places as needed.) The 7.5% yleld bond is sold at a discount of $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A $4000, 7.0% bond redeemable at par in seven years bears coupons payable annually. Compute the premium or discount and the purchase price if the yield, compounded annually, is 5.5%, 6.5%, and 7.5%. The purchase price of the 5.5% yield bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The 5.5% yield bond is sold at a premium of $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The purchase price of the 6.5% yield bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The 6.5% yield bond is sold at a premium of $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The purchase price of the 7.5% yield bond is $ (Round the final answer to the nearest cent as needed, Round all intermediate values to six decimal places as needed.) The 7.5% yleld bond is sold at a discount of $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Transcribed Image Text:A $4000, 7.0% bond redeemable at par in seven years bears coupons payable annually. Compute the premium or discount and
the purchase price if the yield, compounded annually, is 5.5%, 6.5%, and 7.5%.
The purchase price of the 5.5% yield bond is $.
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
The 5.5% yield bond is sold at a premium of $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
The purchase price of the 6.5% yield bond is $.
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
The 6.5% yield bond is sold at a premium of $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
The purchase price of the 7.5% yield bond is $.
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
The 7.5% yield bond is sold at a discount of $.
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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