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A bond has a face amount of $10,000 and matures in 10 years. The nominal rate of interest on the bond is 6.4%. At what
A bond has a face amount of $10,000 and matures in 10 years. The nominal rate of interest on the bond is 6.4%. At what price would the bond yield a true rate of interest of 6.5%? 1) Calculate the semi-annual interest payments 2) Calculate the present value of the payments 3) Calculate the present value of the bond at maturity 4) Find the price of this bond 5) Explain the adjusted current yield and current yield.
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