Quimby Corp. purchased ten $1,000 7% bonds of Circuit Corporation when the market rate of interest was 14%. Interest is paid semiannually, and the bonds will mature in ten years. Using the PV function in Excel®, compute the price Quimby paid (the present value) for the bond investment. (Assume that all payments of interest and principal occur at the end of the period. Round your answer to the nearest cent.) Quimby paid on the bond investment.

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
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Quimby Corp. purchased ten $1,000 7% bonds of Circuit Corporation when the market rate of interest was 14%.
Interest is paid semiannually, and the bonds will mature in ten years.
Using the PV function in Excel®, compute the price Quimby paid (the present value) for the bond
investment. (Assume that all payments of interest and principal occur at the end of the period. Round your answer to
the nearest cent.)
Quimby paid
on the bond investment.
Transcribed Image Text:Quimby Corp. purchased ten $1,000 7% bonds of Circuit Corporation when the market rate of interest was 14%. Interest is paid semiannually, and the bonds will mature in ten years. Using the PV function in Excel®, compute the price Quimby paid (the present value) for the bond investment. (Assume that all payments of interest and principal occur at the end of the period. Round your answer to the nearest cent.) Quimby paid on the bond investment.
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