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Subject: Math Finance Table 1 RM20,000,000 of 20-year bonds A corporation decides to issue 20-year bonds in the amount of RM20,000,000. Under the contract, interest
Subject: Math Finance Table 1 RM20,000,000 of 20-year bonds A corporation decides to issue 20-year bonds in the amount of RM20,000,000. Under the contract, interest payments will be made at the rate of 10% compounded semi-annually. The bonds are priced to yield 10% compounded semi-annually to maturity. Question are based on statement in Table 1 (i) Identify F,C,r,Fr,n and i. (ii) Calculate is the issue price of the bond? (iii) Determine the price of RM1000 bond to yield 10% compounded semiannually
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