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Marigold Corp. invested in a three-year, $100 face value, 9% bond paying $113.88. At this price, the bond will yield a 4% return. Interest is payable annually. Marigold uses the amortized cost model of accounting for investments. In Excel, list all the cash flows during the life of the bond and determine the present value of the bond using the NPV() formula. (Round answers to 2 decimal places, e.g. 52.75.) Present value $

Marigold Corp. invested in a three-year, $100 face value, 9% bond paying $113.88. At this price, the bond will yield a 4% return. Interest is payable annually. Marigold uses the amortized cost model of accounting for investments. In Excel, list all the cash flows during the life of the bond and determine the present value of the bond using the NPV() formula. (Round answers to 2 decimal places, e.g. 52.75.) Present value $

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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Marigold Corp. invested in a three-year, $100 face value, 9% bond paying $113.88. At this price, the bond will yield a 4% return. Interest is payable annually. Marigold uses the amortized cost model of accounting for investments. In Excel, list all the cash flows during the life of the bond and determine the present value of the bond using the NPV() formula. (Round answers to 2 decimal places, e.g. 52.75.) Present value $
Transcribed Image Text:Marigold Corp. invested in a three-year, $100 face value, 9% bond paying $113.88. At this price, the bond will yield a 4% return. Interest is payable annually. Marigold uses the amortized cost model of accounting for investments. In Excel, list all the cash flows during the life of the bond and determine the present value of the bond using the NPV() formula. (Round answers to 2 decimal places, e.g. 52.75.) Present value $
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