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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016

Show transcribed image text Time Value of Money 1) Assume that Ford has a 30 year, 6.5% coupon bond. Given Ford?s recent troubles, your broker indicates that the yield-to-maturity of this bond should be 7.95%. Assume that coupon payments are annual. What should be the price of this bond? 2) Assume that 3M Corporation has a 15 year, 8% coupon bond and that its reported yield-to-maturity is 7.3%. Assume that coupon payments are semiannual (remember that if payments occur on a semiannual basis then the reported yield to maturity will actually be twice the semiannual yield). What is the price of this bond?
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