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7. Valuing semiannual coupon bonds Aa Aa E Bonds often pay a coupon twice a year. For the valuation of bonds that make semian
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Answer #1

Calculating Present Value,

Using TVM Calculation,

PV = [FV = 1,000,000, PMT = 15,000, N = 10, I = 0.088/2]

PV = $769,398.74

Increase, as currently price is below par value.

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