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Unformatted text preview: 2 Yield to Maturity 0.0500 Another Example • For this bond: 1. Detail the cash flows on a timeline. 2. Confirm the price. 3 Later Another Example 4 • For this bond: 1. Detail the original cash flows on a timeline. 2. Confirm the price. Another Example 5 • For this bond: 1. Detail the original cash flows. 2. Confirm the price. Solve for PV ▫ Enter 27, then N (2/2009  2/2022) ▫ Enter 5.473 / 2, then I/Y ▫ Enter 42.5, then PMT [($1,000 x .085) / 2] ▫ Enter 1000, then FV ▫ Enter CPT , then PV P0 = $1,286.26 128.63 (% of par)...
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This note was uploaded on 01/26/2012 for the course FIN 4620 taught by Professor Patriciarobertson during the Spring '12 term at Kennesaw.
 Spring '12
 PatriciaRobertson

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