What is the purchase price to yield

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Raymond wants to invest a 3.5% annuity bond of $500,000 with interest payable monthly is to be redeemable at par in seven years.

a) What is the purchase price to yield 5% compounded monthly?

b) What is the book value after 6 years?

c) What is the gain or loss if the bond is sold six years after the date of purchase at?

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Reference no: EM132740612

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