Joe Investor

Joe Investor - Therefore, we have to find the value of the...

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Cash Flow PV Factor PV Face Value 63,000 0.1827 11,510.10 Coupon Payments 5,040 6.8109 34,326.94 Price of Bond, March 1, 2009 45,837.04 Note that the bond's life on issuance is 20 years. He considered selling the bond after 5 years when market interest rate has risen to 12%.
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Unformatted text preview: Therefore, we have to find the value of the bond for the remaining life of the bond, which is 15 years, at the current rate which is 12%...
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