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In: Finance

Number Face Value Percent Price Market Value Interest Rate $10 Total Annual of Bonds of Commission...

Number Face Value Percent
Price
Market
Value
Interest
Rate
$10 Total Annual
of Bonds of Commission Bond Interest
Purchased Each Bond per $1,000 bond Investment All Bonds
50 $1,000 85.00% 8%
165 $1,000 75.50% 12.00%
30 $1,000 92.25% 10.75%
20 $1,000 10.50% 7%
25 $1,000 71.50% 9.90%
40 $1,000 73.50% 6.50%
80 $1,000 80.25% 4.80%

Solutions

Expert Solution

Number Face Value Percent Market Interest $10 Total Annual
of Bonds of Price Value Rate Commission Bond Interest
Purchased Each Bond per $1,000 bond Investment All Bonds
50 $             1,000 85.00% $           42,500 8% $                        500 $                  43,000 $             4,000
165 $             1,000 75.50% $       1,24,575 12.00% $                     1,650 $              1,26,225 $          19,800
30 $             1,000 92.25% $           27,675 10.75% $                        300 $                  27,975 $             3,225
20 $             1,000 10.50% $             2,100 7% $                        200 $                    2,300 $             1,400
25 $             1,000 71.50% $           17,875 9.90% $                        250 $                  18,125 $             2,475
40 $             1,000 73.50% $           29,400 6.50% $                        400 $                  29,800 $             2,600
80 $             1,000 80.25% $           64,200 4.80% $                        800 $                  65,000 $             3,840
Total $       3,08,325 $                     4,100 $              3,12,425 $          37,340

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