Simple Interest = Principal amount x Interest rate x period
= $25000 x 8% x 18/12 = $3000
Answer is c. $3000
What is the market price of a $500,000, ten-year, 12% bond issue sold to yield an...
Issue Price of a Bond Abbott, Inc., plans to issue $500,000 of ten percent bonds that will pay interest semiannually and mature in five years. Assume that the effective interest rate is 12 percent per year compounded semiannually. Calculate the selling price of the bonds. Round answers to the nearest whole number. Selling price of bonds is $
Issue Price of a Bond Abbott, Inc., plans to issue $500,000 of ten percent bonds that will pay interest semiannually and mature in five years. Assume that the effective interest rate is 12 percent per year compounded semiannually. Calculate the selling price of the bonds. Round answers to the nearest whole number. Selling price of bonds is _?
Issue Price of a Bond Abbott, Inc., plans to issue $500,000 of ten percent bonds that will pay interest semiannually and mature in five years. Assume that the effective interest rate is 12 percent per year compounded semiannually. Calculate the selling price of the bonds. Round answers to the nearest whole number. Selling price of bonds is si
Issue Price of a Bond Abbott, Inc., plans to issue $500,000 of ten percent bonds that will pay interest semiannually and mature in five years. Assume that the effective interest rate is 12 percent per year compounded semiannually. Calculate the selling price of the bonds. Round answers to the nearest whole number. Selling price of bonds is $ 463,197 *
Issue Price of a Bond Abbott, Inc., plans to issue $500,000 of ten percent bonds that will pay interest semiannually and mature in five years. Assume that the effective interest rate is 12 percent per year compounded semiannually. Calculate the selling price of the bonds. Round answers to the nearest whole number. Selling price of bonds is $
ssue Price of a Bond Abbott, Inc., plans to issue $500,000 of ten percent bonds that will pay interest semiannually and mature in five years. Assume that the effective interest rate is 12 percent per year compounded semiannually. Calculate the selling price of the bonds. Round answers to the nearest whole number. Selling price of bonds is _?
Determine the market price of a $225,000, 10-year, 4% (pays interest semiannually) bond issue sold to yield an effective rate of 6%. (Round factor values to 5 decimal places, e.g. 1.25125 and final answer to 0 decimal places, e.g. 458,582.)
(Yield to maturity Assume the market price of a 12-year bond for Margaret Inc. is $800, and it has a par value of $1,000. The bond has an annual interest rate of 7% that is paid semiannually. What is the yield to maturity of the bond? The yield to maturity of the bond is %. (Round to two decimal places.)
Use the present value tables to calculate the issue price of a $500,000 bond issue in each of the following independent cases. Assume that the bond was issued on January 1, 2010 and that interest is paid quarterly on March 31, June 30 September 30 and December 31. A)A 10-year, 8 percent bond issue; the market interest rate is 12 percent B)A 10-year, 12 percent bond issue; the market interest rate is 8 percent C)A 5-year, 12 percent bond issue;...
Issue Price of a Bond Matt Enterprises issued $200,000 of ten percent, five-year bonds with interest payable semiannually. Determine the issue price if the bonds are priced to yield (a) ten percent, (b) six percent, and (c) 12 percent. Use financial calculator or Excel to calculate answers. Round answers to the nearest whole number.