g interest calculation

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 21P
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A discounted note of face amount X, due in one-
half year, is valued today at $4992. Find X under
each of the following interest calculation
methods.
c) compound discount at effective annual rate
8%
d) simple discount at annual rate 8%
Transcribed Image Text:A discounted note of face amount X, due in one- half year, is valued today at $4992. Find X under each of the following interest calculation methods. c) compound discount at effective annual rate 8% d) simple discount at annual rate 8%
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