interactive bond premium discount model

interactive bond premium discount model - Assumptions...

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Assumptions Number of Periods  5  Market Interest Rate per Period at Issuance 1.00% Bond Principal  1,000,000  Stated (Coupon) Interest Rate per Period 5.00%  At Par   Furture Payment *   PV Factor =  Annuity  50,000   4.32948  Single Payment  1,000,000   0.78353   If market rate is at  1.00%  Furture Payment *   PV Factor =  Annuity  50,000   4.85343  Single Payment  1,000,000   0.95147   Beginning BV   Pd 1   1,194,137   Pd 2   1,156,079   Pd 3   1,117,639   Pd 4   1,078,816   Pd 5   1,039,604 
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 PV   216,474   783,526   1,000,000   PV   242,672   951,466   1,194,137   Interest Exp   Cash   Disc. Amort.   Premium Amort.   Ending BV   11,941   50,000   N/A   38,059   1,156,079   11,561   50,000   N/A   38,439   1,117,639   11,176   50,000   N/A   38,824   1,078,816   10,788   50,000   N/A   39,212   1,039,604   10,396   50,000   N/A   39,604   1,000,000 
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This note was uploaded on 12/17/2010 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas.

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interactive bond premium discount model - Assumptions...

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