Bill M itself has purchased a bond that was issued by Acme Chemical. This bond has a
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Bill M itself has purchased a bond that was issued by Acme Chemical. This bond has a face value of $1,000 and pays a dividend of 10% per year, compounded semi-annually. Bill bought the bond five years ago at face value and there are six years remaining until the bond matures. Bill wishes to sell it now for a price that will result in Bill earning an annual yield of 12% compounded semi-annually. What price does Bill need to sell the bond for to earn his desired return?
The selling price of the bond should be ?$________. (Round to the nearest dollar.)
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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