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Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301 Exercise 75
A $10,000 municipal bond due in 10 years pays interest of $400 every 6 months. If an investor purchases the bond now for $9000 and holds it to maturity, the rate of return received can be determined by the following equation:
A) 0 = 9000 + 400(P/A,i,10) + 10,000( P / F , i ,10)
B) 0 = 9000 + 400( P / A , i ,20) + 10,000( P / F , i ,20)
C) 0 = 10,000 + 400( P / A , i ,20) + 10,000 (P/F,i ,20)
D) 0 = 9000 + 800( P / A , i ,10) + 10,000( P / F , i ,10)
A) 0 = 9000 + 400(P/A,i,10) + 10,000( P / F , i ,10)
B) 0 = 9000 + 400( P / A , i ,20) + 10,000( P / F , i ,20)
C) 0 = 10,000 + 400( P / A , i ,20) + 10,000 (P/F,i ,20)
D) 0 = 9000 + 800( P / A , i ,10) + 10,000( P / F , i ,10)
Explanation
Verified
Verified
F is future accumulated amount,
n is nu...
Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
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