Douglas purchased a $10,000, 8% quarterly bond at face value. He held the bond for five years, received twenty coupon payments, and then sold it. What was the sales price of the bond if he earned a yield of 12% compounded quarterly on his investment?

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Douglas purchased a $10,000, 8% quarterly bond at face value. He held the bond for five years, received twenty coupon
payments, and then sold it. What was the sales price of the bond if he earned a yield of 12% compounded quarterly on his
investment?
Transcribed Image Text:Douglas purchased a $10,000, 8% quarterly bond at face value. He held the bond for five years, received twenty coupon payments, and then sold it. What was the sales price of the bond if he earned a yield of 12% compounded quarterly on his investment?
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