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April 20, 2014

Homework Help: Math

Posted by Jill on Friday, June 18, 2010 at 9:53pm.

I am having a problem with this question and need direction.A $500 8% bond is purchased on Feb. 1,2004 to yield 10% compounded semi-annually. The interest on the bond is payable on Feb. 1 and Aug.1 each year. What is the purchase price if the bond is redeemable at face value on Feb. 1, 2014? I don't even know where to start and can't find any samples in my text. Thank you very much for any help.

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