Question
A private secondary school is selling bonds to raise funds to help make capital improvements to its facilities. The bonds will yield $2,500 in five
A private secondary school is selling bonds to raise funds to help make capital improvements to its facilities. The bonds will yield $2,500 in five years at a discounted percentage of 4%; the current market rate is very favorable at 8%. Interest will be paid semi-annually. Express answers in dollars and cents with commas and dollar sign.
What is the discounted purchase price? Blank 1 What is the interest paid annually?
How much total interest is earned over the life of the bond?
How much money does each bond holder earn by the time her bond matures in five years?
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