Hodson Corp. purchased five $1,000, 4% bonds of Simplex Corporation when the market rate of interest was 6%. Interest is paid semiannually on the bonds, and the bonds will mature in 5 years. Compute the price Hodson paid (the present value) on the bond investment.

Answer rating: 100% (QA)

Coupon 4 semiannual coupon Semiannual coupon 20 Period 5 years 10 period Market intere... View the full answer