Coupon payments are made semiannually

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1) A $1,000 par value bond with an annual 12% coupon rate ill mature in 15 years. Coupon payments are made semiannually. What is the market price if the required annual market rate is 10%?

2) Harbor Hospital’s tax exempt bond is currently selling for $803.64 and has a remaining maturity of 20 years. If the par value is $1,000 and the coupon rate is 6%, what is the yield for maturity?

3) Laurel Regional Hospital needs to borrow $80 million to finance its new facility. The interest rate is 8% for the loan. Principal and interest payments are equal debt service payments, made on an annual basis. Length of the loan is 10 years. The CEO would like to develop a loan amortization schedule for this debt issuance. Prepare a schedule

Reference no: EM131551160

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