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Quiz_4 - BB 366 Quiz#4A Fall ’09 Name sue-mad A \$1200 8...

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Unformatted text preview: BB 366 Quiz#4A Fall ’09 Name sue-mad A \$1200, 8% per year bond with semiannual interest payments (and semiannual compounding) is purchased for \$1260. If the bond is sold at the end of 4 years and 8 interest payments, what should the selling price be to yield a 10% return (5% per semiannual period) on the investment? l2/,O ”we: "ASK/v4 «if, '9: .9) F 3 J ) 3 /._vi = 93 fasté'gz) + 5, /,,r'v?'5’ : J/ﬂ,~2.‘3 324/? f7~ w, I 5: 0953—5235 -. f EE366 Quiz#4B Fall ’09 Name 55mm“) Suppose you purchase a 10-year, \$1000 par value, 12% per year bond with semiannual interest payments (and semiannual compounding), If you pay \$1200 for the bond and hold it to maturity, what rate of interest will you realize? Show your answer as a semiannual interest rate. T 31m éOfoo 4’ ‘1 L i3 1200 "D __ , /<§00 : / —— éOC/7/ﬂ)-)2.o)v— no? i6 ("71%) 2 P . 04, Ira?) Z /900 O 0 ‘7‘ ("#2232 (I I”, 57/ v I‘ ‘1 b J ' ”hf I, A990 —- Lfi/ﬁj’.’ ‘_ «(a , \ f . [/3 9:) ,1. // -- Tl/, O I , as, , , .77 (10/1? “I” a ‘— 9. (34%;; 2/9 ”3&175/9 We]. é MO. 9/ ...
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Quiz_4 - BB 366 Quiz#4A Fall ’09 Name sue-mad A \$1200 8...

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