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Determine the price of a $1.1 million bond issue under each of the following independent assumptions: 1. Maturity 15 years, interest paid annually, stated
Determine the price of a $1.1 million bond issue under each of the following independent assumptions: 1. Maturity 15 years, interest paid annually, stated rate 8%, effective (market) rate 12%. 2. Maturity 15 years, interest paid semiannually, stated rate 8%, effective (market) rate 12%. 3. Maturity 15 years, interest paid semiannually, stated rate 10%, effective (market) rate 8%. 4. Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 8%. 5. Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 10%. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1.)
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