Calculate the cash price of the bond

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1) Calculate the cash price of the following bond, sold on September 21: par = $1,000; coupon rate = 6 percent, paid on January 1 and July 1; quoted price = $961. (Round answer to 2 decimal places, e.g. 1564.25.)

2) A bank is currently offering a savings account paying an interest rate of 7.00 percent compounded quarterly. It would like to offer another account, with the same effective annual rate, but compounded monthly.

What is the equivalent rate compounded monthly? (Round answer to 5 decimal places, e.g. 25.12541%.)

Reference no: EM132459902

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