What rate of interest is being paid on the loan

Reference no: EM131125436

What would you pay for a $130,500 debenture bond that matures in 15 years and pays $13,050 a year in interest if you wanted to earn a yield of:

1.) 9%?

2.)10?

3.)11%

Part 2: LEW Company purchased a machine at a price of $102,000 by signing a note payable, which requires a single payment of $149,872 in 5 years.

Assuming annual compounding of interest, what rate of interest is being paid on the loan?

Reference no: EM131125436

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