A $25 000, 10% bond redeemable at par on December 1, 2030, was purchased on September 25,
Question:
A $25 000, 10% bond redeemable at par on December 1, 2030, was purchased on September 25, 2019, to yield 7.6% compounded semi-annually. Bond interest is payable semi annually.
(a) What is the cash price of the bond?
(b) What is the accrued interest?
(c) What is the quoted price?
(d) Use TI BA II PLUS calculator to verify your answers to parts a, b, and c.
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Step by Step Answer:
a The cash price of the bond is 2273750 This is calculated by using the formula Cash Price Face Valu...View the full answer
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ISBN: 9780135285015
12th Edition
Authors: Ali R. Hassanlou, S. A. Hummelbrunner, Kelly Halliday
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