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Unformatted text preview: o Zero coupon bond: No interest payments Simply get face value of principle payment at end of duration Yield to maturity of bond: o Simply the IRR of a bond o R at which NPV = 0 o Can then calculate quoted: R x (365/ # of days) o Effective annual rate of return: ((1 + r)^2 1) Coupon bond pricing: o PV of an annuity Coupon bond yield: o Set NPV = 0 or use Excel tool GoalSeek...
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