Pam Smith just inherited a $1,000 face value K S Inc bond from her grandmother The bond clearly indicates a 12 coupon rate, but the maturity date has been smudged and cant be read Pam called a broker and determined that similar bonds are currently returning about 8 and that her bond is selling for ...

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Pam Smith just inherited a $1,000 face value K-S Inc. bond from her grandmother. The bond clearly

Question:

Pam Smith just inherited a $1,000 K-S Inc. bond from her grandmother. The bond clearly indicates a 12% rate, but the date has been smudged and can’t be read. Pam called a and determined that similar bonds are currently returning about 8% and that her bond is selling for $1,326.58. How many more interest payments can Pam expect to receive on her inherited bond?

Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for... Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...