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MCS,MBA(IT), Pursuing PHD
Devry University
Sep-2004 - Aug-2010
Assistant Financial Analyst
NatSteel Holdings Pte Ltd
Aug-2007 - Jul-2017
Compute the issue price of each of the following bonds. See thePresent and Future Value Tablesfrom the Appendix (http://sjc.cengagenow.com/ilrn/books/wefa14h/images/ch11/present_and_future_value_tab.gif) for help in solving this item. Round your answers to the nearest dollar.
1. $1,000,000 face value, serial bonds repayable in equal semiannual installments of $50,000 for 20 years, priced on the market to yield 6% compounded semiannually.
2. $1,000,000 face value semiannual coupon bonds, with an annual coupon rate of 6% for the first 10 years and 8% for the second 10 years and the principal due in 20 years, priced on the market to yield 10% compounded semiannually. Round your interim calculations (except present value factors) to the nearest whole dollar.
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