Determine the price she paid when she purchased the bond

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Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 5% per year payable quarterly. Leann owned the bond for 3 years. The 1st interest payment she received was 3 months after she bought the bond. She sold it immediately after receiving her 12th interest payment. Leann’s yield on the bond was 11% per year compounded quarterly. Determine the price she paid when she purchased the bond.

Reference no: EM131303428

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