Question
Complete the below table to calculate the price of a $1.8 million bond issue under each of the following independent assumptions. 1. Maturity 17 years
Complete the below table to calculate the price of a $1.8 million bond issue under each of the following independent assumptions.
1. Maturity 17 years interest paid annually stated rate 10% effective rate effective market rate 12%
2. Maturity 17 years interest paid semiannually stated rate 10% effective market paid rate 12%
3. Maturity 17 years, interest paid semiannually stated rate 12% effective market rate 10%
4. Maturity 9 years, interest paid semi-annually stated rate 12% effective market rate 10%
5. Maturity 9 years, interest paid semiannually, stated rate 12%, effective rate 12%
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