Written Assignment #4

Written Assignment #4 - Dustin Taylor FIN-301 June 2011...

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Dustin Taylor FIN-301 June 2011 Term Written Assignment #4 Chapter 13 Problem #1 a. Annual: ( 29 ( 29 ( 29 ( 29 2 10 10 ... 1 .08 1 .08 1 .08 1 .08 c c c m + + + + + + + + $402.65 + $463.19 = $865.84 Semi-annual: ( 29 ( 29 ( 29 ( 29 2 20 20 ... 1 .04 1 .04 1 .04 1 .04 c c c m + + + + + + + + $456.39 + $407.71 = $864.10 b. Annual: ( 29 ( 29 ( 29 ( 29 2 5 5 ... 1 .08 1 .08 1 .08 1.08 c c c m + + + + + + + $239.56 + $680.58 = $920.14 Semi-annual: ( 29 ( 29 ( 29 ( 29 2 10 10 ... 1 .04 1 .04 1 .04 1 .04 c c c m + + + + + + + + $243.33 + $675.56 = $918.89 c. The bond that matures after 5 years has 5 less coupon payments. d. Current yields = 60/865.84 or 6.93% (a) = 60/865.84 or 6.93% (b) = 60/920.14 or 6.52% Problem #2 a. Annual: ( 29 ( 29 ( 29 ( 29 2 10 10 75 75 75 1,000 ... 1 .1 1 .1 1 .1 1 .1 + + + + + + + + $460.84 + $385.54 = $846.38
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Semi-annual: ( 29 ( 29 ( 29 ( 29 2 20 20 37.5 37.5 37.5 1,000 ... 1 .05
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This note was uploaded on 07/13/2011 for the course FIN 301 taught by Professor Crisonino during the Spring '11 term at Edison State College.

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Written Assignment #4 - Dustin Taylor FIN-301 June 2011...

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