# Two finance Questions

Anonymous

Question description

Suppose that you buy a \$5,000 bond with a 12 percent annual coupon, payable semiannually on January 1 and July 1. On both January 1 and July 1, the bondholder will receive \$300, for a total annual interest payment of \$600 (\$300 + \$300). Based on the principal and accrued interest only, how much would you expect to pay to purchase this bond on May 1?

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An ordinary annuity of \$500 per period, discounted at a rate of 8 percent per period for 3 periods, has a present value of \$1,288.55. If this same annuity was an annuity due, what would its present value be? (Round your answer to the nearest cent.)

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