Question: A $1000 bond, with interest at 8% payable semi-annually on January 1 and July 1, was purchased on March 8, 2012. The bond matures on

A $1000 bond, with interest at 8% payable semi-annually on January 1 and July 1, was purchased on March 8, 2012. The bond matures on July 1, 2015 and yields 4.4% compounded semi-annually. What is the purchase payment for the bond?*

1115.61

1197.08

1124.45

1120.04

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

L Ltd. buys 550 shares of S Ltd. which is based on 1,000 shares at 5.00 EUR. At the time of acquisition the Retained Earnings account is 1,500.00 EUR. At the beginning of the fiscal year, the opening...

What is the purchase price of a bond that has 5 years and 6 months until it matures? The face value of the bond is $3000 and the coupon rate is 5.2% compounded semi-annually. The yield rate is 7.5%...

A $1000 bond, with interest at 8% payable semi-annually on January 1 and July 1, was purchased on March 8, 2017. The bond matures on July 1, 2020 and yields 4.4% compounded semi-annually. What is the...

How much would be paid for the following bond; Face value is $1000 bond. Interest is at 8% payable semi-annually on January 1 and July 1. The bond was purchased on October 8 at 104 plus accrued...

Chapter 6 DEBT SERVICE FUND: Term Bond Example Background : The Town of Susanville voters approved a measure to add an extension to the local fire station expected to cost $1,500,000 (as discussed in...

Volker Inc. issued convertible bonds on July 1, 2020. Additional information on these bonds follows: Par value of the bonds $2,500,000 Term of bonds in years 10 Rate of interest on bonds, payable...

If y = tan ax-b bx + a then prove that dy 1 dx 1 + x

Name: Date: Instructor: Course: Intermediate Accounting, 15th Edition by Kieso, Weygandt, and Warfield "E16-1 (Issuance and Conversion of Bonds) Instructions: For each of the unrelated transactions...

PLease assist me with completing this series of take home questions! David McMahon Answers Due No later than 12:00 P.M. 6/10/12! 1. Under the modified accrual basis of accounting, derived nonexchange...

I need help with E16-15 with regards to the attached document. Name: Date: Instructor: Course: Intermediate Accounting, 15th Edition by Kieso, Weygandt, and Warfield E16-1 (Issuance and Conversion of...

You hedged your banks exposure to declining interest rates by buying one June Treasury bond futures contract at the opening price on April 10, as presented in Exhibit 8-2. It is now Tuesday, June 10,...

Fair Isaac, the company that developed the credit score model used by most lenders today, would like to examine the relationship between the age and credit score of an individual. The following table...

Find the image of the point P(2, 1) under (a) a reflection in the line x+y=4, (b) a 180 rotation about the point (-5, 3), (c) a translation represented by (3). (d) a reflection in the line y=x+2.

A $4000 loan at 4.8% compounded monthly was settled by a single payment of $5000 including accrued interest. Rounded to the nearest day, how long after the initial loan was the $5000 payment made?...

If you had to describe the culture of your university, what would it be like? What observable artifacts are present to be perceived by students? Are there any underlying assumptions that guide your...

A college president says, More than two-thirds of the alumni support my firing of Coach Boggs. The presidents statement is based on 200 emails he has received from alumni in the past three months....

If its not already on your computer, locate, download, and install a copy of traceroute or tracert software. Use the software to ping an IP address at least 2000 miles from your location. Do this...

A solid rectangular iron bar measures 0.50 cm by 1.0 cm by 20 cm. Find the resistance between each of the three pairs of opposing faces, assuming the faces in question are equipotentials.

Tori and some other childeen experimented with balls to see which ones rolled. First using a piece of cardboard to use as a ramp, they angled it on a block to the floor to test the balls. Then Tori...

(Cost classifications) Rick Majerus is a house painter who incurred the fol lowing costs during April 2006 when he painted four houses. He spent $1,200 on paint, $80 on mineral spirits, and $300 on...

(CGM and CGS) Billy Tubbs Inc. began business in July 2006. The firm makes an exercise machine for home and gym use. Following are data taken from the firms accounting records that pertain to its...

(Journal entries) Advanced T. Davis Rags makes evening dresses. The fol lowing information has been gathered from the company records for 2006, the first year of company operations. Work in Process...