A non-interest bearing eight year note for $5000 issued August 1, 2008 is discounted April 1, 2011 at 6.5% compounded semi-annually. Find the compound discount. Give typing answer with explanation and conclusion

A non-interest bearing eight year note for $5000 issued August 1, 2008 is discounted April 1, 2011 at 6.5% compounded semi-annually. Find the compound discount. Give typing answer with explanation and conclusion

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 20P

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1) A non-interest bearing eight year note for $5000 issued August 1, 2008 is discounted April 1, 2011 at 6.5% compounded semi-annually. Find the compound discount.

Give typing answer with explanation and conclusion

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