What is the present value of this transaction

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1. John is planning on making 24 payments to himself every year, with 1st payment in a year from today. First 8 payments are $200 each, then rest of the payments are $400 each. What is the present value of this transaction? Use nominal interest rate of 8% converted semi-annually.

2. Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bond is 8 percent.

What is the coupon rate and YTM on the bond?

Reference no: EM131860454

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