Question: SUBJECT: MUTUAL FUND For example, let's find the value of a corporate bond with an annual interest rate of 10%, making semi-annual interest payments for

SUBJECT: MUTUAL FUND

For example, let's find the value of a corporate bond with an annual interest rate of 10%, making semi-annual interest payments for 2 years, after which the bond matures and the principal must be repaid. Assume a YTM of 6% with a face value of $25,000.00 Compute for the ff:

1.Present value of semi-annual payments 2.Present value of face value 3.Zero-Coupon Bond Valuation

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