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Can you solve #4 please? Fairchild Industries issued 4% bonds 15 years ago. Carla's grandfather told her he purchased one of the bonds when they
Can you solve #4 please?
Fairchild Industries issued 4% bonds 15 years ago. Carla's grandfather told her he purchased one of the bonds when they were issued and they have paid him $1000 per quarter ever since. What is the face value of her grandfather's bond? Assume that I purchased the bond in Problem 1 for $825.62 on July 2,1982 . On July 1, 1987 I decided to cash in my usual semi-annual coupon and sell the bond. How much would I have to sell the bond for in order to earn a 10% per year (nominal) rate of return on my bond investment? Use future worth to determine your answer. Fairchild Industries issued 4% bonds 15 years ago. Carla's grandfather told her he purchased one of the bonds when they were issued and they have paid him $1000 per quarter ever since. What is the face value of her grandfather's bond? Assume that I purchased the bond in Problem 1 for $825.62 on July 2,1982 . On July 1, 1987 I decided to cash in my usual semi-annual coupon and sell the bond. How much would I have to sell the bond for in order to earn a 10% per year (nominal) rate of return on my bond investment? Use future worth to determine yourStep by Step Solution
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