INSTRUCTIONS FOR USING THE RECONCILIATION …
Calculate the simple interest rate for the following security. A person invests $1000 in a bond that pays 7 percent interest, for 5 years (paid annually). ... the price was $1000 therefore the coupon payment is based on $1,000 (that was the original deal with the borrower). 8 percent of $1000 = $80. The purchase price of the bond is given to be ... ................
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