1.
=RATE(10,11%*1000,-1175,1000)
=8.35%
2.
=RATE(5,11%*1000,-1175,1090)
=8.13%
3.
Option II
4.
The bond will be called in Year 5
Year 5=RATE(5,11%*1000,-1175,1090)=8.13%
Year 6=RATE(6,11%*1000,-1175,1080)=8.27%
Year 7=RATE(7,11%*1000,-1175,1070)=8.37%
Year 8=RATE(8,11%*1000,-1175,1060)=8.46%
Year 9=RATE(9,11%*1000,-1175,1050)=8.53%
Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity....
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