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A $21,000 bond redeemable at par on November 26, 2018 is purchased on February 28, 2007. Interest is 8.3% payable semi-annually and the yield is

$21,000

bond redeemable at

par

November 26, 2018

is purchased on

February 28, 2007.

Interest is

8.3%

payable semi-annually and the yield is

6.4%

compounded semi-annually.

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

(b) What is the accrued interest?

(a) The cash price is

$24,707.8824,707.88.

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