If you have 1200 bonds with a current price of $995 with an annual interest rate at 3%. A par value of $1000 and matures in 20 years. The value of these bonds at maturity is 1194000. What is the payment per period for these bonds and what is the interest yield for these bonds?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 9P
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If you have 1200 bonds with a current price of $995 with an annual interest rate at 3%. A par value of $1000 and
matures in 20 years. The value of these bonds at maturity is 1194000. What is the payment per period for these bonds
and what is the interest yield for these bonds?
Transcribed Image Text:If you have 1200 bonds with a current price of $995 with an annual interest rate at 3%. A par value of $1000 and matures in 20 years. The value of these bonds at maturity is 1194000. What is the payment per period for these bonds and what is the interest yield for these bonds?
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