(a)
To determine:
Time when bond matures.
Introduction:
Bond is a fixed
(b)
To determine:
Purchase price of bond.
Introduction:
Par value refers to the price of the bond which is returned to the shareholder at maturity of the bond.
(c)
To determine:
Amount one need to pay to buy bond from someone.
Introduction:
Bond is a fixed return investment in which an individual gives money to an entity and entity in return gives fixed return to him over the period of time and par value of the bond too at maturity.
(d)
To determine:
Bond’s current yield.
Introduction:
Current yield refers to the ratio of annual interest to the current market price of the bond in percentage terms.
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Personal Finance: Turning Money into Wealth, Student Value Edition (7th Edition) (The Pearson Series in Finance)
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