Calculate the price

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Question - Calculate the price of a $1.9 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):

1. Maturity 13 years, interest paid annually, stated rate 9%, effective (market) rate 12%.

2. Maturity 9 years, interest paid semiannually, stated rate 9%, effective (market) rate 12%.

3. Maturity 7 years, interest paid semiannually, stated rate 11%, effective (market) rate 12%.

4. Maturity 15 years, interest paid semiannually, stated rate 11%, effective (market) rate 12%.

5. Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 10%.

Reference no: EM132623851

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