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A $100 000 Bond Bearing Interest at 8% Payable Semi-Annually

Question 6

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A $100 000 bond bearing interest at 8% payable semi-annually is bought five years before maturity to yield 6% compounded annually. If the bond is redeemable at par, what is the purchase price?

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FV = $100 000; PMT = $100000(0...

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