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Watson consulting, llc is a consultancy to consultants. They have bonds which have a face value...

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Finance

Watson consulting, llc is a consultancy to consultants. Theyhave bonds which have a face value of $1,000. The bonds carry a 3.5percent semi-annual coupon, and mature in 10 years. What is thecurrent price of these bonds if the yield to maturity (the goingmarket rate, rd) is 5 percent? $883.08 $813.06 $884.17 $749.04$594.98

Answer & Explanation Solved by verified expert
3.8 Ratings (521 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 ValuePar Value The Price    See Answer
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Transcribed Image Text

Watson consulting, llc is a consultancy to consultants. Theyhave bonds which have a face value of $1,000. The bonds carry a 3.5percent semi-annual coupon, and mature in 10 years. What is thecurrent price of these bonds if the yield to maturity (the goingmarket rate, rd) is 5 percent? $883.08 $813.06 $884.17 $749.04$594.98

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