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Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
Edition 12ISBN: 978-0132605540Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
Edition 12ISBN: 978-0132605540 Exercise 77
Solve each application problem. Assume a sales commission of $10 per bond, unless indicated otherwise, and use the table in this section. Round the rate to the nearest tenth of a percent.
BOND FUND Pete Chong manages bonds for a fund company. He purchases 4000 Goldman Sachs Group (GS) bonds that mature in 2037. Since this is a large purchase, the commission is only $.80 per bond. Find (a) the total cost of the purchase including commissions, (b) the annual interest payment, and (c) the effective interest rate based on total cost including commissions.
BOND FUND Pete Chong manages bonds for a fund company. He purchases 4000 Goldman Sachs Group (GS) bonds that mature in 2037. Since this is a large purchase, the commission is only $.80 per bond. Find (a) the total cost of the purchase including commissions, (b) the annual interest payment, and (c) the effective interest rate based on total cost including commissions.
Explanation
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a) Look across the top of the Bond Table...
Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
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