A $200 000 bond is redeemable at 108 in 14 years. If interest on the bond is 5.5% payable semi-annually, what is the purchase price to yield 4% compounded semi-annually?

Name: A $200 000 bond is redeemable at 108 in 14 years. If interest on the bond is 5.5% payable semi-annually, what is the purchase price to yield 4% compounded semi-annually?
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Question

Quizplus · Accepted Answer

The Answer is PP = 200000.00(1.08)(1.02)^-28 + 5500.00 PP = 200000.00(1.08)(1.02)<sup>-28</sup> + 5500.00

A $200 000 Bond Is Redeemable at 108 in 14