A $350,000 face value bond having a bond rate of 7% nominal payable semi-annually is purchased for $473,500 and kept for 6 years, at which time it is sold. How much should it sell for in order to yield a 8% nominal return on the investment? $661,520 $522,150 $624,646 $574,023 $517,875

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
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A $350,000 face value bond having a bond rate of 7% nominal payable semi-annually
is purchased for $473,500 and kept for 6 years, at which time it is sold. How much
should it sell for in order to yield a 8% nominal return on the investment?
$661,520
$522,150
$624,646
$574,023
$517,875
Transcribed Image Text:A $350,000 face value bond having a bond rate of 7% nominal payable semi-annually is purchased for $473,500 and kept for 6 years, at which time it is sold. How much should it sell for in order to yield a 8% nominal return on the investment? $661,520 $522,150 $624,646 $574,023 $517,875
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