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show the steps by calculator Bank buys bonds with a par value of $25 million for $24,040,000. The coupon rate is 10 percent, and the
show the steps by calculator
Bank buys bonds with a par value of $25 million for $24,040,000. The coupon rate is 10 percent, and the bonds pay armuat payments. The bonds mature in four years. The bank wants to sell them in two years, and estimates the required rate of return in two years will be 8 percent. What will the market value of the bonds be in two years? a. $24,113,418 b. $24,667,230 PV25 c. $25,000,000 d. $25,891,632 8) Sadik Inc.'s bonds currently sell for $1,280 and have a par value of $1,000. They pay a $135 annual coupon and have a 15 -year maturity, but they can be called in 5 years at $1,050. What is their yield to call (YTC) Step by Step Solution
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