Question: solve with numerical answers Question 10. (4%) K bought a bond on January 1, 2024, that had a face value of $ 500,000, paid interest

solve with numerical answers

Question 10. (4%) K bought a bond on January 1, 2024, that had a face value of $ 500,000, paid interest semiannually (June 30 and December 31) at a coupon rate of 5%. The bond matures on December 31, 2028 (5 years). The market interest rate at the time of purchase was 4 %. Required. a) How much did K pay for the bond? b) On December 31, 2025 the market interest rate increased to 6 %. How much is the bond worth at that time

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