A $10,000, five-year bond redeemable at par and bearing interest at 6.5% payable semi-annually is purchased at
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Question:
A $10,000, five-year bond redeemable at par and bearing interest at 6.5% payable semi-annually is purchased at a market price of $10,000 four years and 10 months before maturity.
a). Determine the cash price of the bond.
b). Explain bond rate and principal of a bond.
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
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