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Unformatted text preview: Bond M: Years to maturity 20 Years to first round of interest payments 6 Years to second round 14 Face value $20,000 Amount of first round interest payment 1,200 Amount of second round 1,500 Bond N: Years to maturity 20 Face value $20,000 Required return on both bonds 10% Output area: Bond M: a) Present value of face value = $2,840.91 Present value of first round = 7,242 Present value of second round = 3,391.44 Current price of Bond M = $13,474.20 b) Current price of Bond N = $2,840.91...
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This note was uploaded on 07/24/2009 for the course FIN FIN taught by Professor Robbani during the Spring '09 term at University of Maryland Baltimore.
- Spring '09