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A 2-year 5,000 3% bond with semiannual coupons is purchased to yield an annual rate of 5% and redeems at par. a. (4%) Calculate the
A 2-year 5,000 3% bond with semiannual coupons is purchased to yield an annual rate of 5% and redeems at par. a. (4%) Calculate the bond price. Show the formula set-up even if you use a calculator (which you absolutely should do). b. (12%) Complete the amortization schedule below for this bond. Half Coupon YearPayment Principal Adjustment Interest Due Book Value 2 4 Totals
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
4th Edition
0077262379, 978-0077262372
