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und and the annual interest payment was then 11 peront. T u rn was inne with the required Wison Oil Company issued bonds five
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Answer #1

rate positively ..

Computation of present value
YTM = 11%+3%= 14%
we have to use financial calculator to solve this
put in calculator -
FV 1000
PMT 1000*11% 110
I 14%
N 20
Compute PV ($801)
therefore answer =             801.31
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