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Unformatted text preview: $45.625 FV = $1,000 PV = $1,059.42 3. CALC: n = 15 x 2 = 30 r = 8% / 2 = 4% PV = ? PMT = 9.125% x 1,000 / 2 = $45.625 FV = $1,000 PV = $1,097.27 b. 1. CALC: n = 1 x 2 = 2 r = 7% / 2 = 3.5% PV = ? PMT = 9.125% x 1,000 / 2 = $45.625 FV = $1,000 PV = $1,020.18 2. CALC: n = 7 x 2 = 14 r = 7% / 2 = 3.5% PV = ? PMT = 9.125% x 1,000 / 2 = $45.625 FV = $1,000 PV = $1,116.03 3. CALC: n = 15 x 2 = 30 r = 7% / 2 = 3.5% PV = ? PMT = 9.125% x 1,000 / 2 = $45.625 FV = $1,000 PV = $1,195.42 c. 1. CALC: n = 1 x 2 = 2 r = 9% / 2 = 4.5% PV = ? PMT = 9.125% x 1,000 / 2 = $45.625 FV = $1,000 PV = $1,001.17 2. CALC: n = 7 x 2 = 14 r = 9% / 2 = 4.5% PV = ? PMT = 9.125% x 1,000 / 2 = $45.625 FV = $1,000 PV = $1,006.39 3. CALC: n = 15 x 2 = 30 r = 9% / 2 = 4.5% PV = ? PMT = 9.125% x 1,000 / 2 = $45.625 FV = $1,000 PV = $1,010.18 d. Interestrate risk varies directly with maturity. The longer maturity of the bonds, the larger the price change is when interest rates change....
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 Spring '10
 
 New York Stock, Philadelphia Electric

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