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    Rush Group: Present value of 3 year bond issue using financial calculator

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    Rush Group wants to sell $25 million (Face Value) in three year bonds and receive $24 million for them today. If interest rates are 7.56%, what must the coupon rate be?

    Answer: 6.04%

    Could you please post this solution as you are doing it on a financial calculator. (ex: n= i/y= pv= pmt= fv= ) I know that n=6 and i/y=7.56/2 and fv=1000 but I don't know what pv and I know you are supposed to solve for pmt multiply that by 2 and divide that by 1000 to get the coupon rate.

    What is the present value (pv)?

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    Solution Summary

    The solution explains the correct inputs for a financial calculation to arrive at the correct answer.