Set up expressions initially with functional notation like P/F,i,n 1. Benedict purchased an $8000, 9% semi-annual bond at face value. He kept the bond for five years, received ten coupon payments, and then sold it. What was the sales price of the bond if he earned a yield of 10% compounded semi-annually on his investment (to the nearest cent)?

Set up expressions initially with functional notation like P/F,i,n 1. Benedict purchased an $8000, 9% semi-annual bond at face value. He kept the bond for five years, received ten coupon payments, and then sold it. What was the sales price of the bond if he earned a yield of 10% compounded semi-annually on his investment (to the nearest cent)?

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

See similar textbooks

Similar questions

How much interest are you going to pay after 45 days if you borrowed 50,000.00 in a lending investor with an interest rate of 5% per month?
Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank has offered you $850 monthly installments, which equates to a 3.67% annualized interest rate. The monthly interest rate of 0.31% is the annual rate divided by 12. You know that the interest is paid at the end of the period, so you can multiply the opening balance by the monthly interest rate to get the interest paid. What is the opening balance for the month of June? Month Payment Interest Principal Opening Balance Closing Balance January $850.00 $10,000.00 February $850.00 March $850.00 April $850.00 May $850.00 June $850.00 July $850.00 August $850.00 September $850.00 October $850.00 November $850.00 December $850.00 Monthly Rate 0.31% Annual Rate 3.67% Total Interest Paid CHOICES: A.5,045.75B. No…
A 55-year-old man deposits $50,000 to fund an annuity with an insurance company. The money will be invested at 8% per year, compounded semiannually. He is to draw semiannual payments until he reaches age 65. What is the amount of each payment?
How long will it take for your initial investment of $4,775 to reach $7,500 if the money is invested in an account that pays an interest rate of 15% every year? Your Answer:
A loan of $10,500 was given at an interest rate of 4% payable at the end of the fifth year. Find the continuous compound amount to be paid back.
Peter invested her savings in a bank at 4.75% compounded quarterly. How much money did she invest to enable withdrawals of $3,000 at the beginning of every 6 months from the investment for 5 years, if the first withdrawal is to be made in 11 years?
Is the value of b were to change to a larger number, what else would change as a result of this?
For an investment of $100,000 at 9% interest for 8 years, find (a) the simpleinterest, and (b) the compound interest if interest is calculated once per year.
Mr. Doe is trying to decide whether to put his money in the XYZ Bank or the ABC Bank. The XYZ Bank pays 6% per annum interest, compounded annually; the ABC Bank pays 5% per annum interest, compounded quarterly. Mr. Doe expects to keep his money in the bank for 5 years. Which bank should he select? Answers: C. XYZ
A perpetuity earns interest at an annual rate of 4.2% compounded monthly and has monthly withdrawals of $595. Find the amount A of the perpetuity.
Use the following information to answer question 18. Darlene received an inheritance of $15 000. She invested it in a GIC that carns 4.5% per year, compounded annually. She would like this investment to accumulate to $25 000, which she can put toward a down payment on a house. The table below shows Darlene's balance over the first 5 years. Time, / (years) 0 1 2 3 4 5 Amount, A (S) 15 000 15.675 16.380 17 117 17 888 18 693 18 Use a logarithmic regression equation to determine the time it takes, to the nearest tenth of a year, for the balance to equal $25 000. (Hint: LI-Amount; L2 = Time).
What is the principal that will grow to $5600 in six years, eleven months at 3.7% compounded quarterly?