Investment

You are buying a bond at a clean price of $1,140. The bond has a face value
of $1,000, an 8 percent coupon, and pays interest semiannually. The next
coupon payment is one month from now. What is the dirty price of this bond?

Please show how you arrive to this answer.

Bank A pays 6% simple interest annually on its investment accounts. If Bank B pays interest on its account compounded semiannually, what is the annual percentage rate (APR) should the bank set if it wants to match Bank A over an investment horizon of 10 years?

An investment pays $2,100 per year for the first 7 years, $4,200 per year for the next 7 years, and $6,300 per year the following 8 years (all payments are at the end of each year).

If the discount rate is 8.20% compounding quarterly, what is the fair price of this investment?

Work with 4 decimal places and round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72.   A. $26,476.57 B. $38,511.37 C. $34,729.00 D. $34,385.15 E. $32,665.89

Solution:

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