A five year promissory note with a face value of $5000, bearing interest at 6% compounded semi-annually, was sold 18 months after its issue date to yield the buyer 4% compounded quarterly. What amount was paid for the note?
A) $6719.58
B) $5845.79
C) $5463.64
D) $4753.16
E) $4349.82

Question

Quizplus · Accepted Answer

The Answer of A five year promissory note with a face value of $5000, bearing interest at 6% compounded semi-annually, was sold 18 months after its issue date to yield the buyer 4% compounded quarterly. What amount was paid for the note?
A) $6719.58
B) $5845.79
C) $5463.64
D) $4753.16
E) $4349.82

A Five Year Promissory Note with a Face Value of $5000