Question
1. Consider a bond with a coupon rate of 5%, a yield-to-maturity of 8.23%, and a face value of $1,000. The coupons are paid semi-annually
1. Consider a bond with a coupon rate of 5%, a yield-to-maturity of 8.23%, and a face value of $1,000. The coupons are paid semi-annually and the bond matures in 12 years. What is the price (or PV) of this bond?
2. Assuming a discount rate of 7.5%, calculate the PV of $100,000 in 10 years.
3. Assuming an interest rate of 5%, calculate the monthly payment on a $3,000,000 loan amortized over 5 years.
4. What if, in addition to what is stated in the previous question, payments of $12,000 per year were made? In other words, a starting point of $12,000 at time zero, plus $12,000 added each year for 45 years, starting at time 1. What would the FV be then?
(Please show me how to use financial calculator to do those questions)
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