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What would you pay for a $185,000 debenture bond that matures in 15 years and pays $9,250 a year in interest if you wanted to earn a yield of: Click here to view factor tables
What would you pay for a $185,000 debenture bond that matures in 15 years and pays $9,250 a year in interest if you wanted to earn a yield of:
Click here to view factor tables.
Collapse question part
(a)
3%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Amount to Pay
$enter a dollar amount to pay rounded to 0 decimal places
Expert Solution
Computation of Amount to Pay:
Amount to Pay =(PVA 3%,15*Interest)+(PVF 3%,15* Face value)
=(11.9379*$9,250)+(0.6419*$185,000)
= $110,425.90 + $118,744.46
Amount to Pay = $229,170.36
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