Additional Practice Problems Using the Tables_1

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Additional Practice Problems Using the Tables 1. What price would you pay for the following bond? (20,.06) a. 10,000 face value, coupon rate of 16%, interest paid semiannually. The bond matures in ten years and the yield to maturity is 12% 2. What price would you pay for a zero coupon bond that matures in 6 years; 1,000 face value; 8% yield to maturity. 3. You currently have a 20 year mortgage and have made payments for the last 5
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Unformatted text preview: years. The interest rate on the mortgage is 8% and interest payments are made annually. Your current annual payment is 12,325 per year. You want to refinance this mortgage as you can now get a rate of 6%. What is the amount that you are going to refinance? Pv of annuity...
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