A bond with a face value of

$7,000

pays quarterly interest of

3.5

percent each period.

Thirty-four

interest payments remain before the bond matures. How much would you be willing to pay for this bond today if the next interest payment is due now and you want to earn

6

percent compounded quarterly on your money?

LOADING...

Click the icon to view the table of

compound interest factors

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for discrete compounding periods when

i=1.5%.

You should pay

$nothing.

(Round to the nearest cent as needed.)

A bond with a face value of $7,000 pays quarterly interest of 3.5 percent each period. Thirty-four interest payments remain before the bond matures. How much would you be willing to pay for this bond today if the next interest payment is due now and you want to earn 6 percent compounded quarterly on your money? Click the icon to view the table of compound interest factors for discrete compounding periods when i = 1.5%. You should pay $ (Round to the nearest cent as needed.)