Two finance Questions

timer Asked: May 16th, 2014

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?


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.)

Tutor Answer

(Top Tutor) Studypool Tutor
School: New York University
Studypool has helped 1,244,100 students
flag Report DMCA
Similar Questions
Hot Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors