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A 30-year bond with face amount 10,000 is bought to yield (2) .08. In each of the following cases find the purchase price of
A 30-year bond with face amount 10,000 is bought to yield (2) .08. In each of the following cases find the purchase price of the bond and the bond's coupon rate. (a) The final entry in the amortization schedule for accumulation of discount is 80. (b) The first entry in the amortization schedule for amortization of premium is 80. (c) The final entry in the schedule for interest due is 500.
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To find the purchase price of the bond and the bonds coupon rate we need to calculate the present value of the bonds cash flows based on the given yield rate Lets calculate them for each case a The fi...
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Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter
8th Canadian Edition
007133887X, 978-0071338875
