The following table shows three cases, each with one missing element. Required: Use the bond calculator at www.fncalculator.com to determine the missing element for each case. Assume simple annual compounding. (Round your percentage values to nearest whole percent and the rest to the nearest whole dollar amounts.) Total Face Value Total Bond Proceeds Stated Interest Rate Market Interest Rate (yield) Bond Term (years) $ Case a 100,000 105,786 6% % $ Case b 200,000 6% 5% 11 $ Case c 100,000 109,295 % 6% 14

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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Urmilaben 

The following table shows three cases, each with one missing element.
Required:
Use the bond calculator at www.fncalculator.com to determine the missing element for each case. Assume simple annual
compounding. (Round your percentage values to nearest whole percent and the rest to the nearest whole dollar amounts.)
Total Face Value
Total Bond Proceeds
Stated Interest Rate
Market Interest Rate (yield)
Bond Term (years)
$
Case a
100,000
105,786
6%
%
7
REAL Case b
$
200,000
6%
5 %
11
$
Case c
100,000
109,295
%
6%
14
Transcribed Image Text:The following table shows three cases, each with one missing element. Required: Use the bond calculator at www.fncalculator.com to determine the missing element for each case. Assume simple annual compounding. (Round your percentage values to nearest whole percent and the rest to the nearest whole dollar amounts.) Total Face Value Total Bond Proceeds Stated Interest Rate Market Interest Rate (yield) Bond Term (years) $ Case a 100,000 105,786 6% % 7 REAL Case b $ 200,000 6% 5 % 11 $ Case c 100,000 109,295 % 6% 14
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