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Compute Bond Price Compute the price of a 8.0 percent coupon bond with 15 years left...

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Finance

Compute Bond Price Compute the price of a 8.0 percent couponbond with 15 years left to maturity and a market interest rate of7.0 percent. (Assume interest payments are semi-annual.) Is this adiscount or premium bond?

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3.8 Ratings (536 Votes)
Current Price of the Bond The Current Price of the Bond is the Present Value of the Coupon Payments plus the Present Value of the face Value Par Value of the bond 1000 Semiannual Coupon Amount 40    See Answer
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Transcribed Image Text

Compute Bond Price Compute the price of a 8.0 percent couponbond with 15 years left to maturity and a market interest rate of7.0 percent. (Assume interest payments are semi-annual.) Is this adiscount or premium bond?

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