Example 8 (continued) 1) find the future value of the coupons over 5 years and add the value of the bond 5 years from today: FV(Coupon): 60 pmt, 2 I, 5 n, Compute FV=312.24 Then get the PV(bond in 5 years: 60 pmt, 10 I, 15 n, 1000 FV, Compute PV=695.76 In sum, you will accumulate $1008 after 5 years
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