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Out of the 5 questions, I got only 1 right, firm 3, years to maturity is 6. The other four I got wrong. Applying Time
Out of the 5 questions, I got only 1 right, firm 3, years to maturity is 6. The other four I got wrong.
Applying Time Value of Money Concepts Complete the missing information in the table below. Assume that all bonds pay interest semiannually. Do not use negative signs with answer. Round percentages to one decimal place (ex. 0.0345 = 3.5%). Round all other values to the nearest whole number.
Annual | Years to | Coupon | Issue | ||
---|---|---|---|---|---|
Yield | Maturity | Rate | Face value | Proceeds | |
Firm 1 | 8.00% | 15 | 7.00% | $400,000 | $Answer
|
Firm 2 | 3.00% | 10 | 0.00% | $Answer
| $631,100 |
Firm 3 | 6.50% | Answer
| 5.00% | $500,000 | $463,223 |
Firm 4 | Answer % | 12 | 3.50% | $1,000,000 | $1,136,452 |
Firm 5 | 0.80% | 20 | 2.00% | $600,000 | $Answer
|
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