Calculate the price of bond issue

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Problem - Complete the below table to calculate the price of a $1.0 million bond issue under each of the following independent assumptions:

1. Maturity 12 years, interest paid annually, stated rate 10%, effective (market) rate 12%.

2. Maturity 9 years, interest paid semiannually, stated rate 10%, effective (market) rate 12%.

3. Maturity 8 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%.

4. Maturity 10 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%.

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

Reference no: EM132701090

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