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Unformatted text preview: PV Coupons: PMT = ($1,000*.06)/2 = $30.00; n = 10*2 = 20; i = 7%/2 = 3.5% PVA = $426.37 PV of Face Value: FV = $1,000; n=20; i=3.5% PV = $502.57 Bond Value = PVA + PV = $928.94 What would you sell a bond for if you sold it today? PV Coupons: PMT = ($1,000*.06)/2 = $30.00; n = 2.5*2 = 5; i = 10%/2 = 5% PVA = $129.88 PV of Face Value: FV = $1,000*1.0625 = $1062.50; n=5; i=5% PV = $832.50 Bond Value = PVA + PV = $962.38...
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 Winter '08
 OUYANG
 Finance

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