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Compute the price of a bond

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Reference no: EM132204035

The Florida Investment Fund buys 58 bonds of the Gator Corporation through a broker. The bonds pay 10 percent annual interest. The yield to maturity (market rate of interest) is 12 percent. The bonds have a 10-year maturity. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Using an assumption of semiannual interest payments:

a. Compute the price of a bond

b. Compute the total values of the 58 bonds

Reference no: EM132204035

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