question archive A $5000 bond with semi-annual coupon at 8% is redeemable at par on June 30, 2023
A $5000 bond with semi-annual coupon at 8% is redeemable at par on June 30, 2023
Subject:FinancePrice: Bought3
- A $5000 bond with semi-annual coupon at 8% is redeemable at par on June 30, 2023. This bond is sold on September 15, 2020 at a market quotation of 97 2/8. What did the buyer pay for the bond and determine accrued bond interest? *
- Floating rate loans charge interest according to market interest rate. John takes a 10 year mortgage loan of $60,000 at j12=9% repayable by monthly payments. His EMI works out at $760.05. He plans to keep the EMI same throughout the loan tenure however, tenure of the loan can be adjusted with changes in market interest rate. Three years hence, interest rate in the market falls to 8.5%. If the monthly payment is kept same what will be the remaining duration of the loan and the size of final payment. *
