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try to use a ba II plus calculator and for a) The cash price is the purchase price on the interest date preceding the date
try to use a ba II plus calculator and for a)
The cash price is the purchase price on the interest date preceding the date of purchase with accrued interest between the preceding date of purchase and the actual purchase date.
A $18,000 bond redeemable at par on September 10,2008 is purchased on July 14,2002 . Interest is 9.2% payable semi-annually and the yield is 6.1% compounded semi-annually. (a) What is the cash price of the bond? (b) What is the accrued interest? (c) What is the quoted price? (a) The cash price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)Step by Step Solution
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