please answer the question attached. is paid semiannualiy on the bonds, and the

Question

please answer the question attached.

is paid semiannualiy on the bonds, and the bonds wil sen annua y on the bonds, and the bonds will mature in six year mature in six years Bar well Corp. purchased 10 $1,000 4% bonds of Current Power Corporation when the market rate Using the PV function in Exce compute the price Bamwell paid (the present value) on the bond investmnt. (Assume that all payments of interest and principal occur at the end of the period. Round your answer to the nearest cent) Barnwell paid Son the bond investment.

Explanation / Answer

pv = ( 6%, 12, -200, -10000)

pv= $6,646.46

Barmwell paid $6646 on the bond investment.

Face value
[10*1000] 10000 Coupon rate
(4%/2) 2% Semiannual coupon payment
(20*10) 200 Rate
(12% /2 ) 6% Nper
(6*2) 12

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.