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Unformatted text preview: PROBLEM 43
Given
Face value Current price Maturity Terms Coupon rate $1,000.00 $1,081.26 8 years semiannual interest only 7.25% Solution Legend
= Value given in problem = Formula/Calculation/Analysis required = Qualitative analysis or Short answer required = Goal Seek or Solver cell = Crystal Ball Input = Crystal Ball Output Note: The Effective Annual YTM accounts for semiannual compounding, i.e., (1 + .0298)^2  1. Solution
Semiannual YTM Annual YTM 2.98% 6.05% Solution Legend
= Value given in problem = Formula/Calculation/Analysis required = Qualitative analysis or Short answer required = Goal Seek or Solver cell = Crystal Ball Input = Crystal Ball Output e Effective Annual YTM accounts for semiannual ding, i.e., (1 + .0298)^2  1. ...
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This note was uploaded on 07/24/2009 for the course FIN FIN taught by Professor Robbani during the Summer '09 term at University of Maryland Baltimore.
 Summer '09
 Robbani
 Interest

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