A $100 000 bond redeemable at par on October 1, 2040, is purchased on January 15, 2019.

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A $100 000 bond redeemable at par on October 1, 2040, is purchased on January 15, 2019. Interest is 5.9% payable semi-annually and the yield is 9% compounded semi-annually.

(a) What is the purchase price of the bond?

(b) What is the accrued interest?

(d) Use TI BA II PLUS calculator to verify your answers to parts a, b, and c.

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Contemporary Business Mathematics With Canadian Applications

ISBN: 9780135285015

12th Edition

Authors: Ali R. Hassanlou, S. A. Hummelbrunner, Kelly Halliday

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Question Posted: Oct 27, 2020 07:10 AM

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A $100 000 bond redeemable at par on October 1, 2040, is purchased on January 15, 2019.

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a The purchase price of the bond is 100000 This is because the bond is redeemable at par on October ...View the full answer

Contemporary Business Mathematics With Canadian Applications

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