An analyst is interested in calculating the cash price of a bond. He is analyzing a 10,000
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Question:
An analyst is interested in calculating the cash price of a bond. He is analyzing a 10,000 USD, five-year bond redeemable at par and bearing interest at 6.5% payable semi-annually.
The bond is purchased at a market price of 10,000 USD four years and 10 months before maturity.
Determine the cash price of the bond. Note: the cash price = market price + accrued interest
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0134141084
11th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
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