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I do not understand where/how you get ^40? 5. Coupon rate 7%, paid semi-annually, 20 year bond, 9% yield, and $1,000 Par. $1,000 * .07
I do not understand where/how you get ^40?
5. Coupon rate 7%, paid semi-annually, 20 year bond, 9% yield, and $1,000 Par. $1,000 * .07 = $70/2 = $35 * (1-1/(1.045)^40)/.045+ $1,000/(1.045)^40 $644.06 + $171.93 = $815.99 DiscountStep by Step Solution
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Multinational Finance
Authors: Kirt Butler
2nd Edition
0324004508, 978-0324004502
