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A 90-day CD with GH100,000 face value was issued on July 17, 2020, offering a 6 percent coupon with a market yield of 7 percent.
A 90-day CD with GH100,000 face value was issued on July 17, 2020, offering a 6 percent coupon with a market yield of 7 percent. Your company is interested in holding this CD. As the financial consultant of your company, a) Compute the payoff (Future Value). b) Compute the price of this CD on July 17, 2020 and advise your company accordingly. c) On August 10, 2020, the market yield dropped to 5.5 percent. Compute the price of the CD
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