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An 8 year bond with a par value of $1000 has a semiannual coupon of 7.1%...

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Finance

An 8 year bond with a par value of $1000 has a semiannual couponof 7.1% and yield of 5%. What is the approximate price of thisbond? Please provide excel formula.

a) $864

b) $1,000

c)$1085

d) $1106

e)$1137

Answer & Explanation Solved by verified expert
3.6 Ratings (539 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 ValuePar Value The Price of the Bond    See Answer
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Transcribed Image Text

An 8 year bond with a par value of $1000 has a semiannual couponof 7.1% and yield of 5%. What is the approximate price of thisbond? Please provide excel formula.a) $864b) $1,000c)$1085d) $1106e)$1137

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