Question: B D E 1 A 10 year, $300,000 bond is issued at a price to yield 10%. Interest is paid semiannually. 2 3 Annual contract

B D E 1 A 10 year, $300,000 bond is issued

B D E 1 A 10 year, $300,000 bond is issued at a price to yield 10%. Interest is paid semiannually. 2 3 Annual contract rate(stated rate) 12% 4 Annual market rate effective rate) 10% 5 Payments within year 2. Years to maturity 10 7 Par (face) value $300,000 8 Issue price $337,387 9 10 Using the PV function, the issue price of the bond is determined to be $337,387. Function Arguments PV Rate Nper +-number number t. number + - number + - number FV Type Returns the present value of an investment the total amount that a series of future payments is worth now. Which is the correct formula for the Rate variable? Multiple Choice O =B365 =84 BS =63 O =84

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