15.5 - = $50 X 7.360 = $368.00 PV of Principal = $1,000 PF...

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SIMPLE BOND QUESTION A 5% COUPON BOND HAS 10 YEARS TO MATURITY. THE YIELD TO MATURITY ON THIS BOND IS 6%. HOW MUCH WOULD YOU PAY FOR THIS BOND?
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Bond Valuation ANS PV of Interest: = $50 PF IVA {6%, 10 periods}
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Unformatted text preview: = $50 X 7.360 = $368.00 PV of Principal: = $1,000 PF IVA {6%, 10 periods} = $1,000 X 0.558 = $558.00 Price = $368.00 + $558.00= = $986.00...
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This note was uploaded on 11/13/2011 for the course CIVE 2*** taught by Professor - during the Spring '11 term at Carleton CA.

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15.5 - = $50 X 7.360 = $368.00 PV of Principal = $1,000 PF...

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