lve in digital format step by step A signed promissory note for $ 15,000 for fifteen years at an interest rate of 10% compounded semi-annually was sold ten months before maturity with a yield of 3% compounded monthly. You want to know the value of the document that was sold
lve in digital format step by step A signed promissory note for $ 15,000 for fifteen years at an interest rate of 10% compounded semi-annually was sold ten months before maturity with a yield of 3% compounded monthly. You want to know the value of the document that was sold
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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A signed promissory note for $ 15,000 for fifteen years at an interest rate of 10% compounded semi-annually was sold ten months before maturity with a yield of 3% compounded monthly. You want to know the value of the document that was sold
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In this we have to calculate maturity value and than add value for 10 months.
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