Question
Gurgle wishes to fund their ever-growing company by issuing bonds with a face value of $100 and an effective semi-annual coupon rate of 1% which
Gurgle wishes to fund their ever-growing company by issuing bonds with a face value of $100 and an effective semi-annual coupon rate of 1% which are to be redeemed at par in 8 years. The company claims that the prices on these bonds are calculated at a yield of 6% pa compounded semi-annually. Calculate the price of each bond (P). Give your answer in dollars and cents to the nearest cent.
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Statistics For Business And Economics
Authors: Paul Newbold, William Carlson, Betty Thorne
8th Edition
0132745658, 978-0132745659
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