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You decided to issue a bond to raise $50,000. Come-up with a term/time, rate and coupon payment. Calculate how much the bond will sell for
You decided to issue a bond to raise $50,000. Come-up with a term/time, rate and coupon payment. Calculate how much the bond will sell for (PV), what the par/face (FV) value will be, coupon payment (PMT) and length/time (N). Lastly what is your coupon rate.
(This is an open ended question. Rates, payments, etc. can be made up completley as long as the bond in the end stays around $50,000. )
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