Ms . Jones wants to make 8 % nominal interest compounded quarterly on a bond investment. She

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Question:

.

Jones wants to make

8 %

nominal interest compounded quarterly on a bond investment. She has an opportunity to purchase a

6 %,

10, 000

bond that will mature in

19

years and pays quarterly interest. This means that she will receive quarterly interest payments on the face value of the bond

(

10, 000)

6 %

nominal interest. After

19

years she will receive the face value of the bond. How much should she be willing to pay for the bond today?

Posted Date: May 11, 2024 04:09 AM

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Ms . Jones wants to make 8 % nominal interest compounded quarterly on a bond investment. She

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