A $10,000 bond redeemable at par on August 10, 2019 was bought on June 15, 2015. The bond pays 5% compounded semi-annually and the current yield is 6% compounded semi-annually. Round final answers to the nearest cent. b) What was the accrued interest amount? c) What was the quoted price?

A $10,000 bond redeemable at par on August 10, 2019 was bought on June 15, 2015. The bond pays 5% compounded semi-annually and the current yield is 6% compounded semi-annually. Round final answers to the nearest cent. b) What was the accrued interest amount? c) What was the quoted price?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 5P

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A $10,000 bond redeemable at par on August 10, 2019 was bought on June 15, 2015. The bond pays 5% compounded semi-annually and the
current yield is 6% compounded semi-annually. Round final answers to the nearest cent.
b) What was the accrued interest amount?
c) What was the quoted price?

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