Question

4. A man wants to make 14 % nominal interest compounded semi-annually on a bond investment. How much should the man be willing to pay now for a 12 %, P 10 000 bond that will mature in 10 years and pays interest semi- annually? 5. A company issued 50 bonds of P 1 000 face value each, redeemable at a par at the ends of 15 years to accumulate the funds required for redemption, the firm established a sinking fund consisting of annual deposits, the interest rate of the fund being 4 %. What was the principal in the fund at the end of the 12th year?

          4. A man wants to make 14 % nominal interest compounded semi-annually on
a bond investment. How much should the man be willing to pay now for a 12
%, P 10 000 bond that will mature in 10 years and pays interest semi-
annually?
5. A company issued 50 bonds of P 1 000 face value each, redeemable at a par
at the ends of 15 years to accumulate the funds required for redemption, the
firm established a sinking fund consisting of annual deposits, the interest rate
of the fund being 4 %. What was the principal in the fund at the end of the
12th year?

4. A man wants to make 14 % nominal interest compounded semi-annually on
a bond investment. How much should the man be willing to pay now for a 12
%, P 10 000 bond that will mature in 10 years and pays interest semi-
annually?
5. A company issued 50 bonds of P 1 000 face value each, redeemable at a par
at the ends of 15 years to accumulate the funds required for redemption, the
firm established a sinking fund consisting of annual deposits, the interest rate
of the fund being 4 %. What was the principal in the fund at the end of the
12th year?

Added by Kathy K.

Question

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