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Madsen Motors's bonds have 19 years remaining to maturity. Interest is paid annually, they have a...

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Finance

Madsen Motors's bonds have 19 years remaining to maturity.Interest is paid annually, they have a $1,000 par value, the couponinterest rate is 6%, and the yield to maturity is 7%. What is thebond's current market price? Round your answer to the nearestcent.

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4.3 Ratings (560 Votes)
Current Market Price of the Bond The Current Market Price of the Bond is the Present Value of the Coupon Payments plus the Present Value of the face Value Face Value of the    See Answer
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Transcribed Image Text

Madsen Motors's bonds have 19 years remaining to maturity.Interest is paid annually, they have a $1,000 par value, the couponinterest rate is 6%, and the yield to maturity is 7%. What is thebond's current market price? Round your answer to the nearestcent.

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