A bond with face value $1,000, simple interest 5.3%, and term 6 years is bought by an investor for $1,145 with a commission of 1%. Who makes a greater profit on the bond, the original owner or the buyer?
A bond with face value $1,000, simple interest 5.3%, and term 6 years is bought by an investor for $1,145 with a commission of 1%. Who makes a greater profit on the bond, the original owner or the buyer?
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 3EA: Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the...
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Transcribed Image Text:81. A bond with face value $1,000, simple interest 5.3%, and term 6
years is bought by an investor for $1,145 with a commission of
1%. Who makes a greater profit on the bond, the original owner
or the buyer?
Answer
82. The buyer makes $16.55 more.
until
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