Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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solution should be mathematically explained (no excel or computer code)
Transcribed Image Text:A 1000 par value 18-year bond with annual coupons is bought to yield an annual
effective rate 5%. The amount for amortization of premium in the 10th year is 20. The book
value of the bond(the present value of the future cash flows) at the end of 10 is X. Calculate
5.
X.
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