You wish to purchase a $1,100 bond from a friend who needs the money. There are...

Question

Question

You wish to purchase a $1,100 bond from a friend who needs the money. There are 6 years remaining until the bond matures, and

business economics

Answer 1

Answer #1

what is the annual bond rate

=(((1300-(1100/(1+(14%/2))^(6*2)))/((1-(1+(14%/2))^(-6*2))/(14%/2)))/1100)*2

=18.58%

the above is answer..

Answer 2

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