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  3. a bond that matures in 19 years has a ?$1,000 par

A bond that matures in 19 years has a ?$1,000 par value. The annual coupon interest...

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Finance

A bond that matures in 19 years has a ?$1,000 par value. Theannual coupon interest rate is 12 percent and the? market'srequired yield to maturity on a? comparable-risk bond is 17percent. What would be the value of this bond if it paid interest?annually? What would be the value of this bond if it paid interest?semiannually?

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3.6 Ratings (663 Votes)
1Annual interest Information provided Par value future value 1000 Time19 years Coupon rate 12 Coupon payment 0121000 120 Yield to maturity 17 The value of the bond is calculated by computing the present    See Answer
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A bond that matures in 19 years has a ?$1,000 par value. Theannual coupon interest rate is 12 percent and the? market'srequired yield to maturity on a? comparable-risk bond is 17percent. What would be the value of this bond if it paid interest?annually? What would be the value of this bond if it paid interest?semiannually?

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