A $10,000 bond redeemable at par on August 10, 2019 was bought on June 15, 2015....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A $10,000 bond redeemable at par on August 10, 2019 was bought on June 15, 2015. The bond pays 5% compounded semi-annually and the current yield is 6% compounded semi-annually. Round final answers to the nearest cent. a) What was the purchase price of the bond? b) What was the accrued interest amount? c) What was the quoted price? A $10,000 bond redeemable at par on August 10, 2019 was bought on June 15, 2015. The bond pays 5% compounded semi-annually and the current yield is 6% compounded semi-annually. Round final answers to the nearest cent. a) What was the purchase price of the bond? b) What was the accrued interest amount? c) What was the quoted price?
Expert Answer:
Answer rating: 100% (QA)
Face value 10000 Coupon rate 5 Time to maturity 4 years ... View the full answer
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0134141084
11th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
Posted Date:
Students also viewed these finance questions
-
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 $100 000 bond redeemable at par on October 1, 2040, is purchased on January 15, 2019. Interest is 5.9% payable semi-annually and the yield is 9% compounded semi-annually. (a) What is the purchase...
-
A $25 000, 10% bond redeemable at par on December 1, 2025, is purchased on September 25, 2014, to yield 7.6% compounded semi-annually. Bond interest is payable semi-annually. (a) What is the cash...
-
Write a program that draws two circles with radius 15 pixels, centered at random locations, with a line connecting the two circles. The line should not cross inside the circles, as shown in Figure...
-
Mary has earnings of $50,000 this year. She also has been fortunate because the market value of the condominium she purchased this year for $100,000 has increased by 5 percent. Assuming that the rate...
-
Complete the concept map by correctly adding the connecting phrases or terms provided to the appropriate locations. contains billions of orbits began to expand rapidly following the converts simple...
-
What is the difference between an accountor and an accountee? Is it important for the needs of both to be taken into account when designing an accounting system? Provide reasons for your view.
-
Wolverine Corp. currently has no existing business in New Zealand but is considering establishing a subsidiary there. The following information has been gathered to assess this project: The initial...
-
A construction company was forced to sell its trucks after one year due to the termination of contract via Mendi-Tambul road. The construction company had been using a 20-year straight- line...
-
a. Determine the magnitude of the resultant force. (Figure 1) b. Determine the coordinate direction angle of the resultant force. c. Determine the coordinate direction angle of the resultant force....
-
Evaluate the following limits and and explain your reasoning. x. dx lim [0,n] - n-00 n
-
The income statement of Riverbed Co. for the month of July shows net income of $3,490 based on Service Revenue $7,630, Salaries and Wages Expense $2,370, Supplies Expense $980, and Utilities Expense...
-
A 1,080-W motor powers a hoist used to lift cars at a service station. (a) How much time would it take to raise a 1,250-kg car 3 m? (b) If the original motor is replaced with one rated at 2,000 W,...
-
Two air columns, both open at one end are vibrating at their first harmonic frequency. One column has a length of 20.0 cm while the other has a length of 20.2 cm. What beat frequency will be heard...
-
A line of uniform charge extends along the x-axis from x = 0.5m to x = +1m. The line has a linear charge density of +0.2C/m. What is the magnitude of electric field at x = -5m on the x-axis?
-
Your mass is 84.6 kg, and the sled s mass is 12.7 kg. The sled is moving by itself on the ice at 4.55 m/s. You parachute vertically down onto the sled, and land gently. What is the sled s velocity...
-
Air enters a compressor operating at steady state at 3 atm with a specific enthalpy of 244.88 kJ/kg and exits at a higher pressure with a specific enthalpy of 945.98 kJ/kg. The mass flow rate is 0.2...
-
a. What is the cost of borrowing if Amarjit borrows $28 500 and repays it over a four-year period? b. How many shares of each stock would he get if he used the $28 500 and invested equally in all...
-
What is the list price of an article that is subject to discounts of 33 1/3%, 10%, and 2% if the net price is $564.48?
-
An appliance store advertises a sofa for $499.99 with nothing down, no payments, and no interest for six months. Determine the cash value the store would be willing to accept on a six-month...
-
On December 2, 2019, Joan borrowed $2400, agreeing to repay the loan with blended payments of $292 per month, starting on January 2. Interest was charged at 7.8% per annum calculated on the monthly...
-
The pendulum has a mass of \(7.5 \mathrm{~kg}\) with center of mass at \(G\) and has a radius of gyration about the pivot \(O\) of \(295 \mathrm{~mm}\). If the pendulum is released from rest at...
-
A metal hoop with a radius \(r=6\) in. is released from rest on the \(20^{\circ}\) incline. If the coefficients of static and kinetic friction are \(\mu_{s}=0.15\) and \(\mu_{k}=0.12\), determine the...
-
The \(\operatorname{drum} A\) is given a constant angular acceleration \(\alpha_{0}\) of \(3 \mathrm{rad} / \mathrm{s}^{2}\) and causes the 70-kg spool \(B\) to roll on the horizontal surface by...
Study smarter with the SolutionInn App