Q\#3 (10 Marks Total: 30 Minutes) On July 1, 2020, Wendy purchased a $1,000 par...
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Q\#3 (10 Marks Total: 30 Minutes) On July 1, 2020, Wendy purchased a $1,000 par value bond ("the Bond") issued by ABC Ltd. (ABC"). ABC issued the Bond on July 1,2020 , at which time the Bond had a 15 year maturity period. Wendy receives $75.00 in interest twice per year. Wendy uses a yield of 8% for her investment needs. Assume that it is now July 1,2023. 1 Required: (a) What price did Wendy pay for the Bond? [5 Marks] (b) What price would Wendy have paid for the bond if she had received interest of $75.00 once per year? [5 marks]
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