Gra6chicani1f Gra6chicani1f

09-11-2016
Mathematics

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What is the rate of return on an $8500 bond purchased at $6500 with an 8% coupoun?

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justfan123 justfan123

09-11-2016

its 10.46% Face value = 8500 earns 8500*.08 = 680 per year 680/6500 = 0.1046

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