A $25 000, 10% bond redeemable at par on December 1, 2030, was purchased on September 25,

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A $25 000, 10% bond redeemable at par on December 1, 2030, was purchased on September 25, 2019, to yield 7.6% compounded semi-annually. Bond interest is payable semi annually.

(a) What is the cash 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 07:09 AM

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A $25 000, 10% bond redeemable at par on December 1, 2030, was purchased on September 25,

Question:

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a The cash price of the bond is 2273750 This is calculated by using the formula Cash Price Face Valu...View the full answer

Contemporary Business Mathematics With Canadian Applications

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