Q:
      
      
         
            
A five-year promissory note with a face value of $3500, bearing interest at 11%  compounded semiannually, was sold 21 months after its issue date to yield the buyer 10% compounded quarterly.What amount was paid for the note
         
       
      
      
      
          
      
      
          Answer & Explanation
         Answer: A) 4336.93         
         
Explanation: i=j/m
Maturity value = PV(1 + i)^n
Term = 5 years - 21 months=  3.25 years
Price paid = FV(1+ i )^-n
       
      
      
      
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