Assume coupons are paid annually

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Reference no: EM132067180

1. Assume coupons are paid annually. Here are the prices of hree bonds with 10 years maturities.

Bond Coupons% Price %

5 88.00

7 107.00

10 138.00

2. What is the yield to maturity of each bond

At the end of each of the next 5 years, you will make a deposit into your bank. You expect the deposits to be as follows:

Year Amount

1 $500

2 $700

3 $800

4 $600

5 $600

If the interest rate you earn on deposits is 6%, how much money will you have in the bank 5 years from now? Enter you answer to 2 decimals,

Reference no: EM132067180

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