4. A $2,000 14% bond with quarterly coupons is redeemable in fifteen years for an amount C. The bond is bought at issue for price P which gives a nominal yield rate of 9.2% compounded quarterly. The bond is bought at a premium of $665.16. Find the price P and the redemption amount C.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Please help me by doing algebra, not Excel. Thank you

4. A$2,000 14% bond with quarterly coupons is redeemable in fifteen years for an amount C. The
bond is bought at issue for price P which gives a nominal yield rate of 9.2% compounded
quarterly. The bond is bought at a premium of $665.16. Find the price P and the redemption
amount C.
Transcribed Image Text:4. A$2,000 14% bond with quarterly coupons is redeemable in fifteen years for an amount C. The bond is bought at issue for price P which gives a nominal yield rate of 9.2% compounded quarterly. The bond is bought at a premium of $665.16. Find the price P and the redemption amount C.
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