Problema 6-year bond which pays 8 percent interest, Ask an Expert

Accounting

Problem:

A 6-year bond which pays 8 percent interest semiannually sells at par ($1,000). Another 6-year bond of equal risk pays 8% interest annually. Both bonds are non-callable and have a face value of $1,000.

Required:

Question: What is the price of the bond which pays annual interest?

a.) $689.08

b.) $980.43

c.) $712.05

d.) $992.64

e.) $986.72

Note: Please provide full description.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171949

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