× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
w
3
w
3
e
3
3
r
3
g
2
2
b
2
M
2
V
2
f
2
c
2
Home Q & A Board Science-Related Homework Help Mathematics
New Topic  
majarm majarm
wrote...
Posts: 406
Rep: 0 0
6 years ago
A $100 000 bond bearing interest at 8% payable semi-annually is bought five years before maturity to yield 6% compounded annually. If the bond is redeemable at par, what is the purchase price?
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
Read 115 times
1 Reply

Related Topics

Replies
wrote...
#1
6 years ago
FV = $100 000; PMT = $100000(0.08)0.5 = $4000; P/Y = 2; C/Y = 1; c =  ; n = 5(2) = 10;
i =   = 0.06; p =  - 1 = .029563014
PP = 100000(1.029563014)-10 + 4000
   = 100000(.7472581729) + 4000(8.549257745)
   = 74725.82 + 34197.03 = $108 922.85
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  336 People Browsing
 123 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 947
  
 932
  
 191
Your Opinion
What's your favorite coffee beverage?
Votes: 305
Previous poll results: Where do you get your textbooks?