Samuel purchased a $1,000 bond paying coupons at an annual rate of 6% payable semiannually and...
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Samuel purchased a $1,000 bond paying coupons at an annual rate of 6% payable semiannually and redeemable at $1,100 to yield a nominal annual rate of 4% convertible semiannually. If the present value of the redemption value at this yield is $140, what is the purchase price? Possible Answers A < $1,420 B > $1,420 but < $1,430 C 2$1,430 but < $1,440 > $1,440 but < $1,450 E 2$1,450 Samuel purchased a $1,000 bond paying coupons at an annual rate of 6% payable semiannually and redeemable at $1,100 to yield a nominal annual rate of 4% convertible semiannually. If the present value of the redemption value at this yield is $140, what is the purchase price? Possible Answers A < $1,420 B > $1,420 but < $1,430 C 2$1,430 but < $1,440 > $1,440 but < $1,450 E 2$1,450
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