Three years ago you purchased a Kraft Heinz corporate bond that pays 5.500 percent annual interest. The face value of the bond is $5,000. What is the total dollar amount of interest that you received from your bond investment over the three-year period? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Total interest

Three years ago you purchased a Kraft Heinz corporate bond that pays 5.500 percent annual interest. The face value of the bond is $5,000. What is the total dollar amount of interest that you received from your bond investment over the three-year period? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Total interest

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

Section: Chapter Questions

Problem 1PS

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Similar questions

$52,000 is invested in a 5-year fixed interest bond paying 5.5% per year. If interest is reinvested in the account, how much will the bond be worth in 5 years? Round your answer to the nearest dollar.
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A.When market rate of interest was 12%, Joshkin Corporation issued $1,000,000 11%, 10-year bonds that pay interest annually. The selling price of the bond issue IS? B.What is the present value of $40,000 to be received in three years, at 12% compounded annually? $ __________ Show Your Work
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You buy a 6% 1,000 bond for $1,000, immediately after semiannual interest has been paid to the previous owner. Eight years later, you sell the bond for $990.50, immediately after you receive the semiannual interest check. What is your yield during ownership?
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Find the purchase price of each bond bought on the given dividend date. Use another sheet of paper for your solution. a. Atty. Bustamante agreed to sell her condominium unit to a campanera worth 2.4 million pesos in two payment schedules: On the first 5 months, the price of the unit is amortized at 3% quarterly. The balance amount will be paid at 4% semiannually for 7 months. Prepare the amortization schedule. b. The Cauayan Consumers Cooperative has taken out a 10-year mortgage for P92, 000 at an annual rate of 5%. A table for the monthly payment on PI, 000 loan is used in finding the monthly amortization. Complete the amortization schedule below. Round off your final answer to the nearest cent. Monthly Payment Paid on Payment Number Interest Balance Paid Principal P92, 000 1 2 3
A $9,000 bond had a coupon rate of 4.50% with interest paid semi-annually. Erin purchased this bond when there were 7 years left to maturity and when the market interest rate was 4.75% compounded semi-annually. He held the bond for 3 years, then sold it when the market interest rate was 4.25% compounded semi-annually. a. What was the purchase price of the bond? b. What was the selling price of the bond? c. What was Erin's gain or loss on this investment?. Please explain all three subparts. I will really upvote

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