A $60,000 bond with a coupon rate of 5.00%, payable semi-annually, is redeemable in 10.5 years....

A $60,000 bond with a coupon rate of 5.00%, payable semi-annually, is redeemable in 10.5 years. What was the purchase price of the bond, when the yield rate was 5.50% compounded semi-annually?

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Expert Solution

Here I'm using compound interest of semi annually .That is rate is devided by 2.and year is multiple of 2.so here total period is 21.and rate is 5.00/2 and 5.50/2 respectively.answer is below thank you.any query comment.

Colby Messinger answered 1 year ago

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