On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.725%. The purchase price was 87.875, and the commission was $8 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a) What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) % (b) What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) (c) If Wayne sold the bonds on November 1 for 92.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.)

On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.725%. The purchase price was 87.875, and the commission was $8 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a) What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) % (b) What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) (c) If Wayne sold the bonds on November 1 for 92.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.625%. The purchase price was 89.875, and the commission was $8 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a) What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) % (b) What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) $ (c) If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.) $ Need Help? Read It
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