On September 6, Irene Westing purchased one bond of Mick Corporation at 94.50%. The bond pays 8% interest on June 1 and December 1. The stockbroker told Irene that she would have to pay the accrued interest and the market price of the bond and a $5 brokerage fee. What was the total purchase price for Irene? Assume a 360-day year (each month is 30 days) in calculating the accrued interest. (Hint: Final cost Cost of bond + Accrued interest + Brokerage fee. Calculate time for accrued interest.) Note: Round your answer to the nearest cent. Total purchase price

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On September 6, Irene Westing purchased one bond of Mick Corporation at 94.50%. The bond pays 8% interest on June 1 and
December 1. The stockbroker told Irene that she would have to pay the accrued interest and the market price of the bond and a $5
brokerage fee.
What was the total purchase price for Irene? Assume a 360-day year (each month is 30 days) in calculating the accrued interest. (Hint:
Final cost Cost of bond + Accrued interest + Brokerage fee. Calculate time for accrued interest.)
Note: Round your answer to the nearest cent.
Total purchase price
Transcribed Image Text:On September 6, Irene Westing purchased one bond of Mick Corporation at 94.50%. The bond pays 8% interest on June 1 and December 1. The stockbroker told Irene that she would have to pay the accrued interest and the market price of the bond and a $5 brokerage fee. What was the total purchase price for Irene? Assume a 360-day year (each month is 30 days) in calculating the accrued interest. (Hint: Final cost Cost of bond + Accrued interest + Brokerage fee. Calculate time for accrued interest.) Note: Round your answer to the nearest cent. Total purchase price
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