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Unformatted text preview: 35, PMT 860, +/, PV 1095, +/, PV I/YR = 10.7% I/YR = 4.8% b) Yes, since the YTM is 10.7% 6) CY = .094 = 80 / Price 14, N Price = $851.06 1000, FV 40, PMT 851.06, +/, PV I/YR = 11.1% 7) 18, N Since PMT = $65, annual interest = $130. 1080, +/, PV 1000, FV So, CY = 130 / 1080 = 12.0% 11.5294, I/YR PMT = $65 8) a) YTM: 1000, FV b) YTC: 1090, FV 28, N 10, N 45, PMT 45, PMT 1155, +/, PV 1155, +/, PV I/YR = 7.2% I/YR = 6.8% c) Expect to earn 6.8% (YTC) since interest rates have declined....
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 Winter '08
 sloan
 Management

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