Question: Please show work! Thank you! ew File Edit View Go Tools Window Help Chap 006.pdf (page 7 of 44) How to choose bond? Bond prices
ew File Edit View Go Tools Window Help Chap 006.pdf (page 7 of 44) How to choose bond? Bond prices are observable, but yields are non-observable. We need to 1st, find yield (based on price), and, 2nd, compare yields of different bonds. i.e., FV= $1,000 PMT = $85 1/7= 7% N=10 PV = By = -$1,105.35 MacBook Air
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