Asked by Keron Ashley on May 01, 2024
Verified
When discounted to yield 9.5% compounded quarterly, a $4500 four-year promissory note bearing interest at 11.5% compounded semiannually was priced at $5697.84. How long after the issue date did the discounting take place?
Promissory Note
A written, legally binding promise to pay a specified sum of money to a designated person at a specified date or upon demand.
Compounded Semiannually
Interest calculation method that applies the interest to the principal balance and the accumulated interest twice each year.
- Compute the remaining duration until bonds and investments mature.
Verified Answer
ZK
Learning Objectives
- Compute the remaining duration until bonds and investments mature.