A $200,000 bond having a bond rate of 7% payable annually is purchased for $182,000 and kept for 8 years, at which time it is sold. How much should it sell for in order to yield a 8% effective annual return on the investment?
Hence, Bond will sell for $187,957
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A $200,000 bond having a bond rate of 7% payable annually is purchased for $182,000 and...
Five $1,000 bonds having a bond rate of 8% per year payable quarterly are purchased for $4,940 and kept for 6 years, at which time they are sold. Determine the selling price that yields a 6% effective annual return on the investment.
Twenty-five $1.000 bonds having a bond rate of 8% per year payable quar- terly are purchased for $22,500 and kept for 5 years. Assume that the bonds are sold immediately after receiving the coupon payments at the end of the 5th year. What must they be sold for in order to earn a 6% effective annual return on the investment?
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