
Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
النسخة 12الرقم المعياري الدولي: 978-0132605540
Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
النسخة 12الرقم المعياري الدولي: 978-0132605540 تمرين 66
Explain how a bondholder can estimate the effective interest rate return on the total cost of the investment, including commissions. (See Example.)
Finding the Cost to Buy Bonds
Assume that the sales charge is $1 per bond, and find the following for Morgan Stanley (MS) bonds maturing in 2042.
(a) The total cost of purchasing 20 bonds
(b) The total annual interest paid on these bonds
(c) The effective interest rate to the buyer including the cost of buying the bonds
SOLUTION

Finding the Cost to Buy Bonds
Assume that the sales charge is $1 per bond, and find the following for Morgan Stanley (MS) bonds maturing in 2042.
(a) The total cost of purchasing 20 bonds
(b) The total annual interest paid on these bonds
(c) The effective interest rate to the buyer including the cost of buying the bonds
SOLUTION

التوضيح
The effective rate is estimated by divid...
Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
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