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Complete the below table to calculate the price of a $1 million bond issue under each of the following independent assumptions (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.):
1. Maturity 10 years, interest paid annually, stated rate 10%, effective (market) rate 12%
2. Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 12%
3. Maturity 10 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%
4. Maturity 20 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%
5. Maturity 20 years, interest paid semiannually, stated rate 12%, effective (market) rate 12%
Required 1,
Maturity 10 years, interest paid annually, stated rate 10%, effective (market) rate 12%. (Round your answers to the nearest whole dollar.)
Table values are based on: n = i = Cash Flow Amount Present Value Interest Principal $ Price of bonds
Required 2
Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 12%. (Round your answers to the nearest whole dollar.)
Table values are based on: n = i = Cash Flow Amount Present Value Interest Principal Price of bonds
Required 3
Maturity 10 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%. (Round your answers to the nearest whole dollar.)
Table values are based on: n = i = Cash Flow Amount Present Value Interest Principal Price of bonds
Required 4
Maturity 20 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%. (Round your answers to the nearest whole dollar.)
Table values are based on: n = i = Cash Flow Amount Present Value Interest Principal Price of bonds
Required 5
Maturity 20 years, interest paid semiannually, stated rate 12%, effective (market) rate 12%. (Round your answers to the nearest whole dollar.)
Table values are based on: n = i = Cash Flow Amount Present Value Interest Principal Price of bonds
Answer & Explanation
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