Janice and Shane are both senior software analysts. They have worked together on projects for six years and get along very well.
1 answer:
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Answer:
$126.02
Explanation:
We use the present value formula to determine the maximum price pay for the bond which is shown in the attached spreadsheet.
Given that,
Future value = $100
Rate of interest = 9% ÷ 2 = 4.5%
NPER = 10 years × 2 = 20 years
PMT = $1,000 × 13% ÷ 2 = $6.5
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the maximum price is $126.02
