Determining the selling price of a bond

scruggee · #1 Nov 6, 2007, 08:34 AM

On December 31, 2004, $180,000 of 12% bonds were issued. The market interest rate at the time of issuance was 14%. The bonds pay interest on June 30 and December 31 and mature in 10 years. Required: Compute the selling price of a single $1,000 bond on December 31, 2004. Note: Round all intermediate calculations to three decimal places, and round your final answer to the nearest cent.

missl · Nov 22, 2007, 09:02 PM

Quote:

Originally Posted by scruggee

On December 31, 2004, $180,000 of 12% bonds were issued. The market interest rate at the time of issuance was 14%. The bonds pay interest on June 30 and December 31 and mature in 10 years. Required: Compute the selling price of a single $1,000 bond on December 31, 2004. Note: Round all intermediate calculations to three decimal places, and round your final answer to the nearest cent.

Hi, I am doing bond too. Maybe we can help eachother ..



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