Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 4% per year payable quarterly. Leann owned the bond for 3 years. The 1st interest payment she received was 3 months after she bought the bond. She sold it immediately after receiving her 12th interest payment. Leanns yield on the bond was 9.5% per year compounded quarterly. Determine the price she paid when she purchased the bond.

Answer rating: 100% (QA)

First lets calculate the total interest Leann received over the 3 years she own... View the full answer