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Unformatted text preview: month? You pay off the whole balance when it drops below $300. Also, how much is your last payment?(20 points) Page 2 ISE 460 Spring 2006 GEZA BOTTLIK MIDTERM No. 1 Solution 02/22/06 Problem No. 3 You are to receive $500 in periods 4 and 5. How much do you have to deposit in periods 1,2, 3 to be equivalent at 10%? Assume that the deposits in periods 1, 2 and 3 are equal? (10 points) Page 3 ISE 460 Spring 2006 GEZA BOTTLIK MIDTERM No. 1 Solution 02/22/06 Problem No. 4 A new bond with a par value of $10,000 and a 20 year maturity sold for $9680 this week. The bond will pay $225 semi annually. What is the bond’s yield to maturity to the nearest 1/8%? (20 points) The annual yield is therefore 4.675% Page 4...
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This note was uploaded on 01/20/2009 for the course ISE 460 taught by Professor Bottlik during the Fall '06 term at USC.
 Fall '06
 Bottlik

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