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2. You own $30,000 in bonds that pay 4.50% per year, with annual bond payments. The bonds mature 17 years from now, and will have

2. You own $30,000 in bonds that pay 4.50% per year, with annual bond payments. The bonds mature 17 years from now, and will have a redemption value of $30,000. You wish to sell them, and the buyer is willing to accept an annual yield of 3.00%. What price should you sell the bonds for?

3. How much should you pay for a 30 year bond that makes quarterly interest payments, has a face value of $100, and a coupon rate of 3.50% per year? The bond redemption price is $200, and you wish to achieve an annual yield of 9.75%.

image text in transcribedimage text in transcribed

The first image is the answer key, and the second is my attempt at solving it, I'm slightly off on both and don't know how.

2) $35,920 3) $45.02 Vn=$30,000(P/F,3%,40)+(5.2%)($30,000)(P/A,3%,40)Vn=30000(0.30656)+(0.052)(30000)(23.11477)Un=$45,307.21Un=$45,0003.Un=$200(P/F,9.76%,120)+(3.5%)($100)(P/A,9.75%,120)Un=200(.000014173)+(.035)(100)(10.2563)Un=$35.89988Un=$36

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