07_03_SOKZAI - PV? $85 $85 $85 $85 $85 $1,000 Component...

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Your Code: SOKZAI Chapter: 07 Problem: 03 Component I: A European style bond has 8.5% coupon on that market that is 20 years left to maturity. The YTM on this bond is 10.2%, what is the current bond price? Component II: 0----------1---------2----------3---------------------------------19--------20
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Unformatted text preview: PV? $85 $85 $85 $85 $85 $1,000 Component III: Bond Price = {C x (1-1/(1+r)^t)/r} + FV/(1+r)^t = 85 x (1-1/1.102^20)/.102 + 1000/1.102^20 = 857.2233724 Component IV: 20 10.2% 85 1000 N I/Y PV PMT FV- 857.2233724...
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