Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 18P
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Question
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Please please correct answer both a and b
Thanks
![Sarah's $7000.00 bond bearing interest at
4.7% payable semi-annually is due in 4 years.
Her money is worth 7.3% compounded semi-
annually.
What is the bond rate?
a. 7.3% compounded semi-annually
b. 4.7% payable semi-annually](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7948941d-4e41-4af3-bdd1-59b341fdb69f%2Fbe645bf7-e103-4ca8-bd21-2c1e2285464f%2Fr6dop3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sarah's $7000.00 bond bearing interest at
4.7% payable semi-annually is due in 4 years.
Her money is worth 7.3% compounded semi-
annually.
What is the bond rate?
a. 7.3% compounded semi-annually
b. 4.7% payable semi-annually
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