By buying and selling government bonds and treasury bill
Rose O'Neal Greenhow (1813 or 1814[1]– October 1, 1864) was a renowned Confederate spy during the American Civil War. A socialite in Washington, D.C. during the period before the war, she moved in important political circles and cultivated friendships with presidents, generals, senators, and high-ranking military officers. She used her connections to pass along key military information to the Confederacy at the start of the war. In early 1861, she was given control of a pro-Southern spy network in Washington, DC by her handler, Thomas Jordan, then a captain in the Confederate Army. She was credited by Jefferson Davis, the Confederate president, with ensuring the South's victory at the First Battle of Bull Run in late July 1861.
Answer:
Price of bond = $1150.72 (Approx.)
Explanation:
Given:
Number of years 12 years
Per value = $1,000
Coupon rate = 10% = 0.1
Market rate = 8% = 0.08
Find:
Price of bond
Computation:
Coupon payment = 1,000 x 10%
Coupon payment = 100
Price of bond = [C/r][1 - 1/(1+r)ⁿ] + Per value/[(1+r)ⁿ]
Price of bond = [100/0.8][1 - 1/(1+0.8)¹²] + 1000/[(1+0.08)¹²]
Price of bond = [100/0.8][1 - 1/(1.8)¹²] + 1000/[(1.08)¹²]
Price of bond = $1150.72 (Approx.)
