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A year ago
A $25 000, 6% bond redeemable at par is purchased 11 years before maturity to yield 6.9% compounded semi-annually. If the bond interest is payable semi-annually, what is the purchase price of the bond?
Textbook 

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
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A year ago
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FV = $5 000; n = 11(2) = 22; P/Y = C/Y = 2; I/Y = 6.9; i = = 0.0345; PMT = 25000(0.06)  = $750.00
PP = 25000(1.0345)-22 + 750
   = 25000.00(.4741646) + 750.00(15.2416064)
   = 11854.11 + 11431.20
   = $23 285.32
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