Question: 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

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

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 6 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 Rate - number number Nper Pmt + - number Fv Type + = number 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 Pmt variable? Multiple Choice O =87*B4/B5 =67"B3/B8 =5753/B5 =87655 63

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