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PLEASE!!! I NEED HELP WITH THIS ASAP!!! part 1) Joaquim Alvez purchases 32 bonds that mature in 2024 at 96.7. They have a coupon rate of 8.625%. Find the total cost if commissions are $10 per bond. part
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PLEASE!!! I NEED HELP WITH THIS ASAP!!!

part 1) Joaquim Alvez purchases 32 bonds that mature in 2024 at 96.7.
They have a coupon rate of 8.625%.

Find the total cost if commissions are $10 per bond.

part 2) Joaquim Alvez purchases 32 bonds that mature in 2024 at 96.7.
They have a coupon rate of 8.625%.

Find the annual interest.

part 3) Joaquim Alvez purchases 32 bonds that mature in 2024 at 96.7.
They have a coupon rate of 8.625%.

Find the effective interest rate rounded to the nearest tenth.

User Milind Mevada
by
6.2k points

1 Answer

5 votes
Part 1
Total paid
=cost of the bond+commission
Total paid
32×96.7+32×10=3,414.4

Part 2
Annual interest
32×96.7
=3,094.4
3,094.4×0.08625
=266.892...Annual interest

Part 3
The effective interest rate
((1+0.08625÷12)^(12)−1)×100
=8.974%
User Hydrapheetz
by
6.2k points
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