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A 15-year $500,000 bond is purchased. It is redeemable at 102.5, and it pays semi-annual coupons at i(2) = 5%. It is bought to yield
A 15-year $500,000 bond is purchased. It is redeemable at 102.5, and it pays semi-annual coupons at i(2) = 5%. It is bought to yield i(2) = 6%. Set up a bond amortization/accumulation schedule and then graph the book value column (using a column graph).
Note: Do the first couple years and I will do the rest using excel if they follow the same formulas. Also, no need to graph, I can do it.
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