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4-3sol - PROBLEM 4-3 Given Face value Current price...

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Unformatted text preview: PROBLEM 4-3 Given Face value Current price Maturity Terms Coupon rate $1,000.00 $1,081.26 8 years semi-annual 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 semi-annual compounding, i.e., (1 + .0298)^2 - 1. Solution Semi-annual 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 semi-annual ding, i.e., (1 + .0298)^2 - 1. ...
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