New York Series C bonds with a face value of $120 000 mature January 1, 2015, and

Question:

New York Series C bonds with a of $120 000 mature January 1, 2015, and pay interest at 5% semi-annually. On January 1, 2013, the bonds were sold at a price of 109.007 to yield 0.470%.
(a) Calculate the amount paid for the bonds.
(b) For these bonds, how much interest must be paid each year?
(c) If the bonds had been purchased by the same investor six months earlier for $130 506.40, what would the price have been, and the yield rate?
(d) What yield was realized on this purchase and subsequent sale?
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...