How much annual interest will be received

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Reference no: EM132062997

1. You purchased a 6.25% bond 4 years ago at par. The bond matures 26 years from now and pays interest at the end of each 6 months. Similar bonds are being issued that pay 8.5% interest. What is your $1,000 bond worth today?

2. Rob Morrisey purchased a $1,000 bond that was quoted at 102.25 and paying 8 7/8% interest. How much did Rob pay for the bond? How much annual interest will be received?

Reference no: EM132062997

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