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Tint rences b. Calculate the PV of the following $1,000 bonds assuming an annual coupon and maturity of: (57%, two-year bond: (i) 5.7%, five- year
Tint rences b. Calculate the PV of the following $1,000 bonds assuming an annual coupon and maturity of: (57%, two-year bond: (i) 5.7%, five- year bond; and (0) 10.7%, five year bond. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Present Value b-1 5.70%, two year bond bH 5.70%, five-year bond bili 10.70%, five-year bond You have estimated spot rates as follows: - - 5.70%, r2 - 6.10%, r3 - 6.40%, r4 - 6.60%, rs -6.70%. a. What are the discount factors for each date (that is, the present value of $1 paid in year ? (Do not round intermediate cu Round your answers to 3 decimal places.) Year Discount Factors 1 2 3 4 5 Tint rences b. Calculate the PV of the following $1,000 bonds assuming an annual coupon and maturity of: (57%, two-year bond: (i) 5.7%, five- year bond; and (0) 10.7%, five year bond. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Present Value b-1 5.70%, two year bond bH 5.70%, five-year bond bili 10.70%, five-year bond You have estimated spot rates as follows: - - 5.70%, r2 - 6.10%, r3 - 6.40%, r4 - 6.60%, rs -6.70%. a. What are the discount factors for each date (that is, the present value of $1 paid in year ? (Do not round intermediate cu Round your answers to 3 decimal places.) Year Discount Factors 1 2 3 4 5
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