Calculating the selling of Bonds

missl · #1 Nov 22, 2007, 08:56 PM

Hi, can someone help me out on this question. I am kind of new at doing bonds. Thanks

A bond with a face value of 1000 bears interest at 10 % payable semi-annually. The bond matures on Aug 1 2009. What is the selling price of the bond on April 18, 2007, to yield 9% compoundd semi-annually???

qcmar24 · Nov 25, 2007, 09:54 AM

Quote:

Originally Posted by missl

Hi, can someone help me out on this question. I am kind of new at doing bonds. Thanks

A bond with a face value of 1000 bears interest at 10 % payable semi-annually. The bond matures on Aug 1 2009. What is the selling price of the bond on April 18, 2007, to yield 9% compoundd semi-annually???

To help you answer this Qs i need to know when the did you buy the bond or how many years does it take for the bond to mature.



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