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Bond maturity - Showing all calculations 1. You own 2 bonds (A & B), each with a par value of $1,000. Bond A pays 8%

Bond maturity - Showing all calculations

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1. You own 2 bonds (A & B), each with a par value of $1,000. Bond A pays 8% interest annually; bond B accrues 8% annual interest until maturity. Assume a constant 10% market rate for all years to complete the schedule below. INPUT AREA Interest payment-Bond A Interest payment-Bond B Maturity value Market rate Years to maturity PV annuity @ 10% PV 1 @ 10% OUTPUT AREA VALUE BOND B YEARS TO MATURITY BOND A WN

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