(1 point) A treasury bond has a face value of $14000, semi-annual coupons paid at the...

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Question

business finance

Answer 1

Answer #1

Facts given in this question : Purchase price 12150, Coupon rate is 3%, Compounding is semi annual, Face value is 14000

Future value is calculated below by using the data available :

Current Principal:	$12,150.00
Annual Addition:	$ 420.00
Years to grow:	7.00
Interest Rate (Risk free rate considered)	2.00
Compounding continously	9999 times annually
Future value	$ 17,131.57

Answer 2

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