73 cptpv4511704sameanswerasabove lecturenotes2

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Unformatted text preview: out the required balance as of t=5. BGN mode N = 2 I/Y = 1.886792 (real) PMT = ‐33,455.64 FV = 0 CPT PV = 66,291.73 Don’t forget to switch back to END mode… Find out the required balance as of today (t=0). N = 5 I/Y = 8 (nominal) PMT = 0 FV = 66,291.73 CPT PV = ‐45,117.04 (same answer as above…) LECTURE NOTES #2: Problem 1: t 0 1 2 3 4 5 6 CF CF‐ CF+ ‐5 ‐5 0 2 0 2 ‐1 ‐1 0 3 0 3 4 0 4 3 0 3 ‐2 ‐2 0 PV‐ ‐5.00 0.00 ‐0.83 0.00 0.00 0.00 ‐1.13 FV+ 0.00 3.22 0.00 3.99 4.84 3.30 0.00 ‐6.96 15.35 MIRR = 14.11% Problem 2: Assume face value = $1000 (not stated in the problem) Initial ly, 10 years to maturity, annual coupon payments, 6% coupon rate & YTM=6%. Then YTM=8%. Comp utations for the end of year 5… p Now, co...
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This document was uploaded on 03/30/2014.

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