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A ten-year note for $2220.00 bearing interest at 6.6% compounded monthly is discounted at 8.92% compounded quarterly four years and four months before maturity.. Find the proceeds of the note.

A ten-year note for $2220.00 bearing interest at 6.6% compounded monthly is discounted at 8.92% compounded quarterly four years and four months before maturity.. Find the proceeds of the note.

Essentials Of Investments
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
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A ten-year note for $2220.00 bearing interest at 6.6% compounded monthly is discounted at 8.92% compounded quarterly four years and four months before maturity. Find the proceeds of the note. 10. A 10-year note for$ 1200, bearing interest at 6% compounded monthly, is discounted at 8% compounded quarterly 3 years, 10 months after the date of issue. Find the proceeds of the note. 10 FV= 1200 i= 6% 12 = 0.005 n= 3 12 = 46 46 PV= 1200 x (1.005 & = 1200 x 1.257878925 =$ 1509.45 2 FV= 1509.45 n= 6 12 x 4 = 24.666666666 PV= 1509.45 x (1.02 24.66 = 1509.45 x 1.629812222 = $2,460.12
Transcribed Image Text:A ten-year note for $2220.00 bearing interest at 6.6% compounded monthly is discounted at 8.92% compounded quarterly four years and four months before maturity. Find the proceeds of the note. 10. A 10-year note for$ 1200, bearing interest at 6% compounded monthly, is discounted at 8% compounded quarterly 3 years, 10 months after the date of issue. Find the proceeds of the note. 10 FV= 1200 i= 6% 12 = 0.005 n= 3 12 = 46 46 PV= 1200 x (1.005 & = 1200 x 1.257878925 =$ 1509.45 2 FV= 1509.45 n= 6 12 x 4 = 24.666666666 PV= 1509.45 x (1.02 24.66 = 1509.45 x 1.629812222 = $2,460.12
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