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A $9,000 bond had a coupon rate of 4.25% with interest paid semi-annually. Lindsey purchased this bond when there were 8 years left to maturity
A $9,000 bond had a coupon rate of 4.25% with interest paid semi-annually. Lindsey purchased this bond when there were 8 years left to maturity and when the market interest rate was 4.50% compounded semi-annually. She held the bond for 4 years, then sold it when the market interest rate was 4.00% compounded semi-annually.
a. What was the purchase price of the bond? Round to the nearest cent.
b. What was the selling price of the bond? $0.00 Round to the nearest cent. c. What was Lindsey's gain or loss on this investment? amount was $ $0.00 .
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