3. Sean purchased a non-interest-bearing note of $5,000from John, which is due on Dec 1, 2025. As in great needof cash, Sean decided to put the note to market for sale. Sean decided to put the note to market for sale. Finally,Tom purchased it on June 30, 2021. Find the size ofproceeds if interest rate is 4.8% p.a. compounded monthlyfor the discount period.

No Coupon Bond Face Value = 5000 Monthly Compounding Interest Rate = 4.8%/12 = 0.40% Time Period =…

Answered: Sean decided to put the note to market…

Sean decided to put the note to market for sale. Finally, Tom purchased it on June 30, 2021. Find the size of proceeds if interest rate is 4.8% p.a. compounded monthly for the discount period.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter27: The Federal Gift And Estate Taxes

Section: Chapter Questions

Problem 21CE

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Question

3. Sean purchased a non-interest-bearing note of $5,000
from John, which is due on Dec 1, 2025. As in great need
of cash, Sean decided to put the note to market for sale.

Sean decided to put the note to market for sale. Finally,
Tom purchased it on June 30, 2021. Find the size of
proceeds if interest rate is 4.8% p.a. compounded monthly
for the discount period.

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