The following table lists several corporate bonds. Treat these as zero coupon bonds, as in Example 2. Company AT&T Bank of America General Electric Goldman Sachs Verizon Wells Fargo Time to Maturity (years) 10 10 2 3 8 7 Annual Compound Interest Rate (%) 3.97 4.42 6.12 5.81 4.41 3.18 If you bought AT&T bonds with a maturity value of $14,000, how much did you originally pay? (Round your answer to the nearest $1.)

The following table lists several corporate bonds. Treat these as zero coupon bonds, as in Example 2. Company AT&T Bank of America General Electric Goldman Sachs Verizon Wells Fargo Time to Maturity (years) 10 10 2 3 8 7 Annual Compound Interest Rate (%) 3.97 4.42 6.12 5.81 4.41 3.18 If you bought AT&T bonds with a maturity value of $14,000, how much did you originally pay? (Round your answer to the nearest $1.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 25P

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Company	AT&T	Bank of America	General Electric	Goldman Sachs	Verizon	Wells Fargo
Time to Maturity (years)	10	10	2	3	8	7
Annual Compound Interest Rate (%)	3.97	4.42	6.12	5.81	4.41	3.18

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