ECO301907 - Coupon bonds: interest rate determined when bod...

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ECO 301 9/7/11 Interest Rates D Present V to price bonds Can use financial calculator during test Can use normal calculator however Discount Bonds (face value in year or less) P= Face/(1+interest)^n
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Unformatted text preview: Coupon bonds: interest rate determined when bod was issued. Ic. PMT C=ic*F Coupon rate vs. alternative interest rate Pbond= F/(1+I)^n Pbond= DCF Interest increases, P of bond falls...
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This document was uploaded on 11/02/2011 for the course ECO 301 at Miami University.

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