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Barnwell Corp. purchased fifteen $1,000 6% bonds of Voltgo Corporation when the market rate of interest was 8%. Interest is paid semiannually, and the bonds will mature in eight years. Using the PV function in Excel, compute the price Barnwell paid (the present value) for the bond investment. (Assume that all payments of interest and principal occur at the end of the period. Round your answer to the nearest cent.) Barnwell paid 883.5 on the bond investment.

Barnwell Corp. purchased fifteen $1,000 6% bonds of Voltgo Corporation when the market rate of interest was 8%. Interest is paid semiannually, and the bonds will mature in eight years. Using the PV function in Excel, compute the price Barnwell paid (the present value) for the bond investment. (Assume that all payments of interest and principal occur at the end of the period. Round your answer to the nearest cent.) Barnwell paid 883.5 on the bond investment.

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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↑ Barnwell paid 883.5 on the bond investment. Barnwell Corp. purchased fifteen $1,000 6% bonds of Voltgo Corporation when the market rate of interest was 8%. Interest is paid semiannually, and the bonds will mature in eight years. Using the PV function in Excel, compute the price Barnwell paid (the present value) for the bond investment. (Assume that all payments of interest and principal occur at the end of the period. Round your answer to the nearest cent.)
Transcribed Image Text:↑ Barnwell paid 883.5 on the bond investment. Barnwell Corp. purchased fifteen $1,000 6% bonds of Voltgo Corporation when the market rate of interest was 8%. Interest is paid semiannually, and the bonds will mature in eight years. Using the PV function in Excel, compute the price Barnwell paid (the present value) for the bond investment. (Assume that all payments of interest and principal occur at the end of the period. Round your answer to the nearest cent.)
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