I believe the answer is $30,706.16 but im not sure 5) Lehman Properties offers bonds with a coupon rate of 8.8 per...

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I believe the answer is $30,706.16 but im not sure
5) Lehman Properties offers bonds with a coupon rate of 8.8 percent paid semiannually. The yield to maturity is 11.2 percent

5) Lehman Properties offers bonds with a coupon rate of 8.8 percent paid semiannually. The yield to maturity is 11.2 percent

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Answer 1

Answer #1

rate positively ..(pic has the formula used in excel)


Given that-

FV		100000
PMT	100000*8.8%/2	4400
I	11.2%/2	5.60%
N	11*2	22

compute PV		($85,033.73)


Therefore price of the bond =		$85,033.73

__ c DE Given that- FV PMT 100000*8.8%/2 11.2%/2 11*2 100000 = 100000*8.8%/2 =11.2%/2 22 compute PV =PV(E8, E9, E7,E6,0) Ther

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Answer 2

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