A $1000 bond bearing interest at 8% payable semi-annually redeemable at par on February 1, 2020, was

Question:

A $1000 bond bearing interest at 8% payable semi-annually redeemable at par on February 1, 2020, was purchased on October 12, 2013, to yield 7% compounded semi-annually. Determine the purchase price.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

See More Books

Question Posted: Feb 26, 2016 04:14 AM

See More Questions

Bonds with a maturity value of $40 000 in 7.5 years, bearing interest at 8% payable quarterly, are sold to yield 6.8% compounded semi-annually. Determine the purchase price of the bonds.
Big Company purchased a machine on February 1, 2013, and will make seven semiannual payments of $28,000 beginning five years from the date of purchase. The interest rate will be 12%, compounded...
A $1000, 9.5% bond with semi-annual coupons redeemable at par on March 1, 2022, was purchased on September 19, 2013, to yield 7% compounded semi-annually. What was the purchase price?
Show the income statement, cash flow statement and balance sheet of the company at 31/12/2020 if: 1. The company start its operations on June 1st, 2020. Over the period, it sells 50 laptop for $400....
It has generally been believed that it is not feasible for men and women to be just friends (New York Times, April 12, 2012). Others argue that this belief may not be true anymore since gone are the...
Fixed-interest fund managers measure convexity in conjunction with duration to better measure their exposures to interest rate risk. Discuss the concept of convexity within the context of interest...
A swaption is an option to enter a swap arrangement in the future. Suppose that company B has a debt of $\$ 10$ million financed over 6 years at a fixed rate of interest of $8.64 \%$. Company A...
A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 10%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the...
You have been hired as an economic consultant to the U.K. government and are presenting the possible actions to mitigate the impact on the U.K.'s bicycle industry from a potential removal of the E.U....
There is a lottery with n coupons and n people take part in it. Each person picks exactly one coupon. Coupons are numbered consecutively from 1 to n, n being the maximum ticket number. The winner of...
A $5000, 4% bond with interest payable semi-annually is redeemable at par in 12 years. What is the purchase price to yield? (a) 3% compounded semi-annually? (b) 5% compounded semi-annually?
A $50 000, 11% bond with semi-annual coupons redeemable at par on April 15, 2022, was purchased on June 25, 2015, at 92.375. What was the approximate yield rate?
Give examples of what sorts of rights we are supposed to have according to natural law theory.
4. In many ways, cache memory and virtual memory are similar. But their purposes are different. For example, cache memory is for decreasing effective access time and virtual memory is for increasing...
1. Consider an employee management system that stores information regarding the employee ID, name, address, contact numbers, date of birth and age. Each employee can have more than one contact...
. For a constant clockwise angular velocity of link m of w= 2 rad/s, examine the difference in the path generated by point A at the bottom of the mechanism (i.e. the "foot") as a function of two...
A 2.4 KVA, 2400/240 V 50 Hz step down transformer has the following parameters R = 1.52, X = 2.52, R2 = 0.022, X =0.032, Rc1 = 6k, Xm1 8 = It is operating at 80% of its rated load at 0.8 power factor...
HOW MANY UNITS MICROSOFT HAVE TO SELL TO MAKE 2X AS MUCH PROFIT THEY MADE LAST YEAR & HOW MUCH MICROSOFT WOULD MAKE IF THEY UP THE SELLING PRICE TO $25 (MICROSOFT OFFICE: 69.99/YEAR) (ITEM: MICROSOFT...
Solve the given equations, all numbers are approximate. 3.0 7.0 R 42
The Ferris wheel in the figure has a radius of 68 feet. The clearance between the wheel and the ground is 14 feet. The rectangular coordinate system shown has its origin on the ground directly below...
The management of a manufacturing plant wishes to add a fenced-in rectangular storage yard of 20,000 square feet, using a building as one side of the yard (see the figure). If A: is the distance (in...
The total daily cost (in dollars) of producing x city bikes is given by C{x) = 500 + 2x + 0.2x2 (A) Sketch the graphs of the average cost function and the marginal cost function on the same set of...
The table gives the total daily costs y (in dollars) of producing x deluxe pizzas at various production levels. (A) Enter the data into a graphing calculator and find a quadratic regression equation...
A couple obtained a $20,000 mortgage loan at an interest rate of 10.5% compounded monthly. (Original principal equals to PV of all payments discounted at the interest rate on the loan contract) (1)...
What strategies and tactics are employed to manage strategic risks and uncertainties, including geopolitical instability, supply chain disruptions, and emerging competitive threats, while preserving...
How do strategic planners integrate ethical considerations and sustainability imperatives into strategic planning processes, balancing short-term financial objectives with long-term societal and...

A $1000 bond bearing interest at 8% payable semi-annually redeemable at par on February 1, 2020, was

Question:

Step by Step Answer:

For adjusting purchase date and beginning of coupon payment Days between August 1 2013 to Oct...View the full answer

Contemporary Business Mathematics with Canadian Applications

Students also viewed these Finance questions