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urgent Funding option 1: Swanson has identified a $10,000 par value corporate bond that matures in 12 years that carries an annual coupon rate of

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Funding option 1: Swanson has identified a $10,000 par value corporate bond that matures in 12 years that carries an annual coupon rate of 7% (3.50% paid semi-annually). The bond currently sells to yield (YTM) 11.21%. Funding option 2: Swanson has identified another $10,000 par value corporate bond which matures in 10 years and carries an annual coupon rate of 6.50% (3.25% paid semi-annually). This bond currently sells to yield 11.11%. Funding Option 1 New YTM 6% 8% 10% 12% 14% 16% Accumulated Coupons Sale of the Bond Total Proceeds GIC Fully Funded (Yes/No) Funding option 1: Swanson has identified a $10,000 par value corporate bond that matures in 12 years that carries an annual coupon rate of 7% (3.50% paid semi-annually). The bond currently sells to yield (YTM) 11.21%. Funding option 2: Swanson has identified another $10,000 par value corporate bond which matures in 10 years and carries an annual coupon rate of 6.50% (3.25% paid semi-annually). This bond currently sells to yield 11.11%. Funding Option 1 New YTM 6% 8% 10% 12% 14% 16% Accumulated Coupons Sale of the Bond Total Proceeds GIC Fully Funded (Yes/No)

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