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Assume you will receive $2,000 a year in years 1 through 5, $3,000 a year in years 6 through 8, and $4,000 in year 9 with all cash flows to be received at the end of the year. If you require a return of 14 percent (%) annually, what is the present value of these cash flows?

Tonya Corp; issued 10-year bonds 2 years ago, at a coupon rate of 6 percent (%). The bonds make semi-annual payments. If these bonds currently sell for 98 percent (%) for par value?

  • What is the YTM?
  • List the key features of a bond.
  • Explain what is meant by net proceeds in the context of a bond sale. Provide an example.

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  • Category:- Basic Finance
  • Reference No.:- M92072887
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