what is the current yield of a bond whose face value if 33,200 and pays a yearly interest of 13.7% if purchased at 36,700? 2) A 75,000, at 11% bond pays coupon semi annually redeemable at 90,000 on January 13,2017, is bought on January 13,2011 to earn interest 13% compounded semi annually. What is its purchasing price? 3) What will be the maturity value of 12,000 invested for four (4) years at 15% compounded quarterly?
what is the current yield of a bond whose face value if 33,200 and pays a yearly interest of 13.7% if purchased at 36,700? 2) A 75,000, at 11% bond pays coupon semi annually redeemable at 90,000 on January 13,2017, is bought on January 13,2011 to earn interest 13% compounded semi annually. What is its purchasing price? 3) What will be the maturity value of 12,000 invested for four (4) years at 15% compounded quarterly?
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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1) what is the current yield of a bond whose face value if 33,200 and pays a yearly interest of 13.7% if purchased at 36,700?
2) A 75,000, at 11% bond pays coupon semi annually redeemable at 90,000 on January 13,2017, is bought on January 13,2011 to earn interest 13% compounded semi annually. What is its purchasing price?
3) What will be the maturity value of 12,000 invested for four (4) years at 15% compounded quarterly?
4) What is the maturity value of 3,000 invested at 9.5% compounded semi annually for 3.5 years
5) Millet wants to provide a 200,000 graduation gift for her daughter Mae who is now 16 years old. She would like fund to be available by the time she is 20 years old of age. She decides on an investment that pays 10% compounded quarterly. How large must the deposit be?
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