A $1,000 Bond, with Interest at 9% on January 1

question 12

Short Answer

A $1,000 bond, with interest at 9% on January 1 and July 1, was purchased on September 12 at 86 plus accrued interest. Compute the entire purchase cost of the bond. (Assume a 360-day year and a commission of $5 per bond.)

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Definitions:

Intrinsic Motivation

Motivation driven by internal rewards or satisfaction, where the activity itself is the primary reward.

Extrinsic Motivation

Extrinsic Motivation involves performing an activity in order to attain an outcome that is separate from the person, such as rewards or avoiding punishment.

Incompatible

Unable to exist or work together without conflict.

Intrinsic Rewards

The personal satisfaction and pleasure derived from accomplishing a task or learning new skills, independent of external rewards.