Compute the selling price of 6.00%, 15-year bonds with a par value of $470,000 and semiannual interest payments. The annual mark rate for these bonds is 4.00%. Use present value Table B.1 and Table B.3 in Appendix B. Note: Round all table values to 4 decimal places, and use the rounded table values in calculations. Round your other final answe to nearest whole dollar amount. Cash Flow $470,000 par (maturity) value $14,100 interest payment Price of Bond Table Value Present Value 259,487 0.5521 $ 22.3965

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
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Compute the selling price of 6.00 %, 15-year bonds with a par value of $470,000 and semiannual interest payments. The annual market
rate for these bonds is 4.00%. Use present value Table B.1 and Table B.3 in Appendix B.
Note: Round all table values to 4 decimal places, and use the rounded table values in calculations. Round your other final answers
to nearest whole dollar amount.
Cash Flow
$470,000 par (maturity) value
S
$14,100 interest payment
Price of Bond
Table Value
Present Value
0.5521
22.3965
$
259,487
Transcribed Image Text:Compute the selling price of 6.00 %, 15-year bonds with a par value of $470,000 and semiannual interest payments. The annual market rate for these bonds is 4.00%. Use present value Table B.1 and Table B.3 in Appendix B. Note: Round all table values to 4 decimal places, and use the rounded table values in calculations. Round your other final answers to nearest whole dollar amount. Cash Flow $470,000 par (maturity) value S $14,100 interest payment Price of Bond Table Value Present Value 0.5521 22.3965 $ 259,487
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