Question
On 30 May 2012, the terms of ADL bond were: Face value, F, is $200 000; nominal interest rate, j, is 10 per cent per
On 30 May 2012, the terms of ADL bond were: Face value, F, is $200 000; nominal interest rate, j, is 10 per cent per annum payable on 30 May and 30 November each year; effective interest rate is 5.52%; redemption price, C, is $200 000; and maturity is on 30 May 2015. Determine the price of the bond on 30 May 2012.
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Financial Accounting Information For Decisions
Authors: John J Wild
3rd Edition
0072974729, 978-0072974720
