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Unit_5_DS_Barnes_Charity - $1,000 10 $50 Future Value(FV...

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Unit 5 DS Solutions MT 217 You purchased a $1,000, 5% coupon bond that matures in 10 years. How much would your bond be worth if interest rates fall to 4% the day after you purchase the bond? What would the bond be worth in one year if interest rates fell to 4 Future Value (FV) Number of Years (N) Payment (PMT) Part 1
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Unformatted text preview: $1,000 10 $50 Future Value (FV) Number of Years (N) Payment (PMT) Part 2 $1,000 9 $50 Fill in the BLUE columns with the relavent data from the problem. Calculate the price of the 4% at that point? Rate (I/Y) Present Value (PV) 4% ($1,081.11) Rate (I/Y) Present Value (PV) 4% ($1,074.35) bond in Red ....
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