A bond has a face value of $4000 and matures on June 21 2025 with...

60.1K

Verified Solution

Question

Finance

image

A bond has a face value of $4000 and matures on June 21 2025 with a bond rate of 6.2% compounded semi-annually. If the bond was purchased on December 21 2019 at a market rate of 6.9% compounded semi-annually, what was the purchase price of the bond? Draw a timeline in your notes to help you practice! Select one: O a. $3873.63 O b. $3864.31 O c. $3903.56 O d. $3855.31 O e. $3883.27

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students