Four years after it was first issued at 6% compounded semiannually, a 25-year, $10,000 strip bond...

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Four years after it was first issued at 6% compounded semiannually, a 25-year, $10,000 strip bond was sold on the bond market at a price that would provide the purchaser with a yield rate of 4.8% compounded semiannually. To the nearest dollar what was the selling price at that time? Four years after it was first issued at 6% compounded semiannually, a 25-year, $10,000 strip bond was sold on the bond market at a price that would provide the purchaser with a yield rate of 4.8% compounded semiannually. To the nearest dollar what was the selling price at that time?

Answer rating: 100% (QA)

Since the bond is a strip bond it does not pay any coupons during its life Instead the entire face v... View the full answer