Question
A $10,000bond redeemable at par on October 10, 2019 was bought on June 26, 2015.The bond pays 4% compounded semi-annually and the current yield is
A $10,000bond redeemable at par on October 10, 2019 was bought on June 26, 2015.The bond pays 4% compounded semi-annually and the current yield is 6% compounded semi-annually.Round final answers to the nearest cent.
a) What was the purchase price of the bond?(6 marks)
b) What was the accrued interest amount?(1 mark)
c) What was the quoted price?(1 mark)
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
