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A bond offers a coupon rate of 6%, paid annually, and has a maturity of 6...

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Finance

A bond offers a coupon rate of 6%, paid annually, and has amaturity of 6 years. If the current market yield is 7% (discountrate), what should be the price of this bond? Enter your answer indollars, without the dollar sign ('$'), and rounded to the nearestcent (2 decimals).

Answer & Explanation Solved by verified expert
4.5 Ratings (833 Votes)
Price of the Bond The Price of the Bond is the Present Value of the Coupon Payments plus the Present Value of the face Value Face Value of the bond 1000 Annual Coupon    See Answer
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Transcribed Image Text

A bond offers a coupon rate of 6%, paid annually, and has amaturity of 6 years. If the current market yield is 7% (discountrate), what should be the price of this bond? Enter your answer indollars, without the dollar sign ('$'), and rounded to the nearestcent (2 decimals).

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