Solved

A $10,000 Face Value Strip Bond Was Purchased for $4188

Question 61

Short Answer

A $10,000 face value strip bond was purchased for $4188.77. At this price, the bond provided a return of 5.938% compounded semiannually until the maturity date. To the nearest day, how long before the maturity date was the bond purchased? Assume that each half year is exactly 182 days long.

Correct Answer:

verifed

Verified

14 years, 6 months a...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q56: Banks usually quote residential mortgage interest rates

Q57: What quarterly compounded rate is equivalent to

Q58: A $6300 face-value investment earning interest at

Q59: Which of the flowing nominal interest rates

Q60: If an interest rate of 8.9% compounded

Q62: 10.20% compounded monthly is equal to 10.69%

Q63: Carlita invested $10,000 for 25 years. For

Q64: What amount compounded quarterly is equivalent to

Q65: Which interest rate would you prefer to

Q66: An $1,100 investment earning 6.3% compounded annually