A$18,000, 9.1% bond redeemable at par is purchased 6.5 years before maturity to yield 8.9% compounded semi-annually. If the bond interest is payable semi-annually, what is the purchase price of the bond? The purchase price of the bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
A$18,000, 9.1% bond redeemable at par is purchased 6.5 years before maturity to yield 8.9% compounded semi-annually. If the bond interest is payable semi-annually, what is the purchase price of the bond? The purchase price of the bond is $ (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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Transcribed Image Text:A$18,000, 9.1% bond redeemable at par is purchased 6.5 years before maturity to yield
8.9% compounded semi-annually. If the bond interest is payable semi-annually, what is the
purchase price of the bond?
The purchase price of the bond is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six
decimal places as needed.)
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