Homework Answers
Solution 1:
Face value of bond = $80,000
Solution 2:
Stated rate of interest = 0.08
solution 3:
Dollar amount of annual interest = $80,000 * 8% = $6,400
Solution 4:
Dollar amount of semi annual interest = $6,400 * 6/12 = $3,200
Solution 5:
Cash purchase price of bond investment = $89,600
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