A. P 57,620 B. P 75,260 C. P 57,720 D. P 75, A $50,000 bond has a maturity date of six years from now. The bond interest rate is 6% per ye payable semiannually. At a market interest rate of 4% per year payable semiannually, the pres of the bond is closest to: A. $41,695 B. $44,291 C. $52,341 D. $55,2 A 6%, $10,000 bond has interest payable annually. The bond will mature 10 years from now. A market interest rate will the present worth of the bond be $10,000? A. At an interest rate less than 6% per year C. 6% per year B. 6% per year compounded semiannually D. At an interest rate greater than 7 A $10,000 municipal bond has an interest rate of 6% per year, compounded semiannually. The will mature in 10 years. If the market interest rate is 8% per year compounded semiannually, a persony purchasing the bond should be willing to pay: A. $10,000 B. On
A. P 57,620 B. P 75,260 C. P 57,720 D. P 75, A $50,000 bond has a maturity date of six years from now. The bond interest rate is 6% per ye payable semiannually. At a market interest rate of 4% per year payable semiannually, the pres of the bond is closest to: A. $41,695 B. $44,291 C. $52,341 D. $55,2 A 6%, $10,000 bond has interest payable annually. The bond will mature 10 years from now. A market interest rate will the present worth of the bond be $10,000? A. At an interest rate less than 6% per year C. 6% per year B. 6% per year compounded semiannually D. At an interest rate greater than 7 A $10,000 municipal bond has an interest rate of 6% per year, compounded semiannually. The will mature in 10 years. If the market interest rate is 8% per year compounded semiannually, a persony purchasing the bond should be willing to pay: A. $10,000 B. On
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
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:18. How much can be paid for a P 50,000, 10% bond, with interest paid semiannually, if the bond matures
12 years hence? Assume that the purchaser will be satisfied with 8% nominal interest compounded
semiannually?
D. P 75,620
A. P 57,620
B. P 75,260
C. P 57,720
19. A $50,000 bond has a maturity date of six years from now. The bond interest rate is 6% per year
payable semiannually. At a market interest rate of 4% per year payable semiannually, the present worth
of the bond is closest to:
D. $55,288
A. $41,695
B. $44,291
C. $52,341
20. A 6%, $10,000 bond has interest payable annually. The bond will mature 10 years from now. At what
market interest rate will the present worth of the bond be $10,000?
A. At an interest rate less than 6% per year
C. 6% per year
D. At an interest rate greater than 7%/year
B. 6% per year compounded semiannually
21. A $10,000 municipal bond has an interest rate of 6% per year, compounded semiannually. The bond
will mature in 10 years. If the market interest rate is 8% per year compounded semiannually, a
persony:purchasing the bond should be willing to pay:
A. $10,000
B. An amount less than $10,000
C. An amount greater than $10,000
D. The amount cannot be determined from the information that is provided
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