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Up3
“…he manager invests the entire $500 million in a 4.75%, 10 year notes at par.”
PV=-500
N=20
I/Y=4.75 / 2
PMT= 500 * 0.0475 / 2 (since it’s par)
FV = 500or leave PV off and so CPT -> PV, you’ll get -500 anyway.
now key in I/Y = 3.75 / 2
then CPT -> PVYou should get 541.37
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