A $50 000 Bond Bears Interest at 4

question 19

Essay

A $50 000 bond bears interest at 4.5% payable semi-annually and is redeemable at par on November 4, 2022. The bond is sold on March 20, 2013, to yield 5.5% compounded semi-annually. What is the cash price?

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Definitions:

Pulp Cavity

The central part of a tooth containing nerves and blood vessels, vital for the tooth's nutrition and sensitivity.

Apical Foramen

Opening at the apex of the root of a tooth; gives passage to the nerve and blood vessels.

Cementum

Layer of modified bone covering the dentin of the root and neck of a tooth; blends with the fibers of the periodontal membrane.

Mastication

Breaking down food by chewing it as a preparatory step for swallowing and digestion.