Bill M itself  has purchased a bond that was issued by Acme Chemical. This bond has a face value of $1,000 and pays a dividend of 10% per year, compounded semi-annually. Bill bought the bond five years ago at face value and there are six years remaining until the bond matures. Bill wishes to sell it now for a price that will result in Bill earning an annual yield of 12% compounded semi-annually. What price does Bill need to sell the bond for to earn his desired return?

 

The selling price of the bond should be ?$________. (Round to the nearest dollar.)

Answer rating: 100% (QA)

Heres how to calculate the selling price of the bond for Bill to earn his desired annual yield 1 Def... View the full answer