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KIC000072 - Exhibit 25-5 Change in Interest on Interest and...

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Exhibit 25-5 Change in Interest on Interest and Price Due to Interest Rate Change After 5.5 Years: is-Year 12.5% Bond Selling to Yield 12.5% Exhibit 25-6 Accumulated Value and Total Return: Six-Month, 12.5% Bond Selling to Yield 12.5% l"~"S(r<;~nthQri""" l1'~""""'i5..5,('001'''.1 rJI~, 0.115, M:lIu.-iry !.I"-",,"'J. 0.5. "ie'kll" ,,..,,,IU;;\.'C fI,l ~3: pru:e. lOll. Par ·..alll" purilt~. 2.,lll11,2G:;l'urch= pncc: :'.S$2(1.261: T3l',,~ I"",umubtro '.111",,' $1':.]83.U33 '.if! Immunization of a Portfolio to Satisfy a Single Liability (continued) -+ Consider. all eigl\I-yeaf 10,125% coupon bend selling ar gil ~C2621C1 vield 125% -+ Suppose that $llt.OOO,OOO of par value of'this bond is purchased for $8.820.~62 -+ E"hibit 2)-7 provides the same information fer tiirs bond as Erhibhs :'5.3 end 2:'''''; did fur the previous bonds. -+ Looking at the last "''-0 cohscns, we see that the accumulated value and the total rerum are never less than the target accurmileted value and the i.ar~!!tyield Thus, tbe targer accumulated value u assured regardless of whet r.aPJX=I15 to file market yield ? E~i::it 25-Ssbows wby.
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