Emily purchaseda bond valued at $10,000 for highway construction for $4,540. IT the bondpays 7.9% annual interest compounded monthly, how long must she hold it until t reachesits full face value?She must hold onto the bond for years(Round to two decimal places as needed.)

Face Value = 10,000 Present Value (Price) = 4540 Monthly Compounding Interest % = 7.9%/12 = 0.6583%…

Answered: Emily purchaseda bond valued at $10,000…

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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Emily purchaseda bond valued at $10,000 for highway construction for $4,540. IT the bond pays 7.9% annual interest compounded monthly, how long must she hold it until t reaches its full face value? She must hold onto the bond for years (Round to two decimal places as needed.)