A $5000 bond that pays 7% semi-annually is redeemable at par in 15 years. Calculate the purchase

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A $5000 bond that pays 7% semi-annually is redeemable at par in 15 years. Calculate the purchase price if it is sold to yield 5% compounded semi-annually (Purchase price of a bond is equal to the present value of the redemption price plus the present value of the interest payments).
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Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0134141084

11th edition

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

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