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10. A bond with a par value of 1000 and 6% semiannual coupons is redeemable for 1100. You are given: I The bond is purchased
10. A bond with a par value of 1000 and 6% semiannual coupons is redeemable for 1100. You are given: I The bond is purchased at P to yield 8% convertible semiannually. I The absolute value of the amount of "principal adjustment" in the 16th coupon period of the amortization schedule is 5. Calculate P. Round your answer to the nearest whole number
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
