On january 1 2005 this bond was sold for 110000 dollars


A small company bought a BMI bond at its face value on January 1st, 1995. This bond pays interest of 1.25% every six months. The face value of the bond is $100,000 and it matures on December 31, 2006. On January 1, 2005, this bond was sold for 110,000 dollars. What interest rate per six months was earned by the company on the BMI bond?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: On january 1 2005 this bond was sold for 110000 dollars
Reference No:- TGS0643389

Expected delivery within 24 Hours