Question
A 20 year bond with face amount 1,000 is bought to yield 6% compounded semiannually. The redemption amount is equal to the face amount. Find
A 20 year bond with face amount 1,000 is bought to yield 6% compounded semiannually. The redemption amount is equal to the face amount. Find the coupon rate and price of the bond if the following is true. These are 3 separate bonds and 3 separate answers.
(a) The first entry in the amortization schedule for the amortization of premium (the principal) is 20.
(b) The final entry in the amortization schedule for the accumulation of discount (the principal) is -10.
(c) The final entry in the schedule for interest due is 32.
Please show all work and equations, I don't understand the other same questions answered.
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Financial Accounting an introduction to concepts, methods and uses
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
13th Edition
978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003
