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Note that their terminology is slightly different than what we have. Par value - Face value (F) Market value - P or PV in our
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Answer #1
i) Annual coupon payment 3.4%*1000
Annual coupon payment 34
ii) Using calculator
Rate = 4.32% RATE(4,3.4%*1000,-967,1000,,)
iii) 967 = 34/(1+i) + 34/(1+i)^2 + 34/(1+i)^3 + 1034/(1+i)^4
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