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Tabitha Is Considering the Purchase of 25 Bonds

Question 49

Essay

Tabitha is considering the purchase of 25 bonds. What is the annual interest for the bonds when the settlement date is on the interest date?

Face value of each bond: $900
Price per bond: 68.15%
Interest rate: 10.65%
Commission per $1,000 bond: $10

Correct Answer:

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$2,396.25;...

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