A $1000 bond bearing interest at 8% payable semi-annually redeemable at par on February 1, 2024, was

Question:

A $1000 bond bearing interest at 8% payable semi-annually redeemable at par on February 1, 2024, was purchased on October 12, 2017, to yield 7% compounded semi-annually. Determine the purchase price.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Contemporary Business Mathematics With Canadian Applications

ISBN: 9780135285015

12th Edition

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

See More Books

Question Posted: Oct 27, 2020 07:09 AM

See More Questions

A $100 000 bond bearing interest at 6.75% payable semi-annually is bought eight years before maturity to yield 7.35% compounded annually. If the bond is redeem- able at par, what is the purchase...
A $100 000 bond redeemable at par on October 1, 2038, is purchased on January 15, 2017. Interest is 5.9% payable semi-annually and the yield is 9% compounded semi-annually. (a) What is the purchase...
A $25 000, 4% bond redeemable at par with interest payable annually is bought six years before maturity. Determine the premium or discount and the purchase price if the bond is purchased to yield (a)...
A trainee in a medical lab will be released to work on her own when her results agree with those of an experienced worker at the 95% confidence level. Results for a blood urea nitrogen analysis are...
Why are national income accounts incomplete estimates of total national economic performance?
Explain what is meant by fiduciary duty and when such a duty arises.
Which one of the following is not a rotary pump? (a) gear pump (b) vane pump (c) screw pump (d) axial pump
Sort the following products into those priced with two-part tariffs, user charges only, or lump sum access fees only: pay-per-view movies on cable TV, pay phones, Netflix, iTunes, country club...
A small boat manufacturer obtains rudders from a single supplier, one per boat. Demand is constant and the target is to sell 1200 boats through their internet site per year. The estimated cost of...
An average of 15 aircraft accidents occur each year (The World Almanac and Book of Facts, 2004). a. Compute the mean number of aircraft accidents per month. b. Compute the probability of no accidents...
Four $10 000 bonds bearing interest at 6% payable quarterly and redeemable at par on September 1, 2028, were purchased on January 23, 2016, to yield 5% compounded quarterly. Determine (a) The premium...
A $50 000, 11% bond with semi-annual coupons redeemable at par on April 15, 2026, was purchased on June 25, 2019, at 92.375. What was the approximate yield rate?
(a) Nomex, a strong fire-resistant fabric, is a polyamide made from meta-phthalic acid and meta-diaminobenzene. Draw the structure of Nomex. (b) Kevlar, made from terephthalic acid (para-phthalic...
Cherokee Incorporated is a merchandiser that provided the following information: Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit...
On January 1, 2021, Company borrows $30,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $8,857, consisting of accrued interest and principal on December...
Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm's...
dy 1. 2. For each differential equation, find the particular solution that passes through the given point. 3 sin(2x); (,-1) (0.3) 3. = +1 and y'(5)=-1 and y(5)=-
Express as a composition of two functions; that is, find g and h such that f = goh. [Note: Each exercise has more than one solution.] - 18. y = 1 |x 3|
Assume that Tesla decides to launch a new website to market discount bookkeeping services to consumers. This chain, named Aladin, requires $500,000 of start-up capital. The founder contributes...
Don Griffin worked as an accountant at a local accounting firm for five years after graduating from university. Recently, he opened his own accounting practice, which he operates as a corporation....
You read in a health magazine about a study in which a new therapy technique for depression was examined. A group of depressed individuals volunteered to participate in the study, which lasted 9...
On the most recent exam in your biology class, every student earned an A. The professor claims that he must really be a good teacher for all of the students to have done so well. Given the confounds...
What are internal validity and external validity, and why are they so important to researchers?
Sandy Bank, Incorporated, makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $510 each....
FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: 29 units at $44 Beginning inventory Sale 26 units at $64 First purchase 15...
Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $93,000. At that date, the fair value of the noncontrolling interest was $31,000. The book value of Slice's...

A $1000 bond bearing interest at 8% payable semi-annually redeemable at par on February 1, 2024, was

Question:

Step by Step Answer:

The purchase price of the bond is calculated using the following formula Purchase Price Fa...View the full answer

Contemporary Business Mathematics With Canadian Applications

Students also viewed these Mathematics questions