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Derek decides to buy a new car. The dealership offers him a choice of paying $524.00...

Derek decides to buy a new car. The dealership offers him a choice of paying $524.00 per month for 5 years (with the first payment due next month) or paying some $28,939.00 today. He can borrow money from his bank to buy the car. What interest rate makes him indifferent between the two options?


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Answer format: Percentage Round to: 3 decimal places (Example: 9.243%, % sign required. Will accept decimal format rounded to 5 decimal places (ex: 0.09243))

Assume a par value of $1,000. Caspian Sea plans to issue a 10.00 year, semi-annual pay bond that has a coupon rate of 8.01%. If the yield to maturity for the bond is 7.71%, what will the price of the bond be?
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Answer #1

60 NPER = number of a payment periods payments = pmt = pv = initial amount rate per period = rate $524.00 $28,939.00 0.276% R

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