Solution:
The problem can be stated in the form of the following equation:
9500 = 330*pvifa(3.25,8) + Price*pvif(3.25,8)
9500 = 330*6.9462 + Price*0.7742
9500 = 2292.246 + Price*0.7742
9500-2292.246=Price*0.7742
Price=(9500-2292.246)/0.7742
=7207.754/0.7742
=9309.99
Question 1 You have just purchased a municipal bond with a $10,000 par value for $9,500....
You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 5 years, selling the bond immediately after you receive the interest payment If your desired nominal yield is 2% per year compounded semiannually, what will be your minimum selling price for the bond? $ Carry all interim...
You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 6 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 2% per year compounded semiannually, what will be your minimum selling price for the bond?
You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 4 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 4% per year compounded semiannually, what will be your minimum selling price for the bond?
You have just purchased a municipal bond with a $10.000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6,6% per year payable semiannually. You plan to hold the bond for 5 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 11% per year componded semiannually, what will be your minimum selling price for the bond? $ Carry all interim...
Question 3 x Your answer is incorrect. Try again. You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 4 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 6% per year compounded semiannually, what will سل* be your...
I have tried solving it, but got it wrong
I have solved the second one!
You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 4 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 7% per year compounded...
4. You h ave purchased a 10,000-dollar bond par value for 9400 dollars. You purchased interest payment. The it immediately after the previous owner received a quarterly bond rate is 8 % per year payable quarterly. You will hold the bond 5 years and sell ayment at that time. You desire a yield of 16 % per immediately after receiving thep -compounded quarterly. What will be the minimum selling price of the bond to achieve this goal?
Question 6 Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 5.5% per year payable quarterly. Leann owned the bond for 3 years. The 1st interest payment she received was 3 months after she bought the bond. She sold it immediately after receiving her 12th interest payment. Leann's yield on the bond was 11% per year compounded quarterly. Determine the price she paid when she purchased the bond. $ Carry all interim calculations to...
Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 7% per year payable quarterly. Leann owned the bond for 3 years. The 1st interest payment she received was 3 months after she bought the bond. She sold it immediately after receiving her 12th interest payment. Leann’s yield on the bond was 15% per year compounded quarterly. Determine the price she paid when she purchased the bond.
Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 5% per year payable quarterly. Leann owned the bond for 3 years. The 1st interest payment she received was 3 months after she bought the bond. She sold it immediately after receiving her 12th interest payment. Leann's yield on the bond was 15% per year compounded quarterly. Determine the price she paid when she purchased the bond. $