As with most bonds, consider a bond with a face value of $1,000. The bond's maturity...

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As with most bonds, consider a bond with a face value of $1,000. The bond's maturity...

As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 13 years, the coupon rate is 6% paid semiannually, and the discount rate is 5%.

What is the estimated value of this bond today?

business finance

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Answer 1

Answer #1

H26 fx --PV(H24,H16, H18,H20) G Semi Annually: 6.00% 13.00 26 (Periods to maturity x 2) 30 (face value x coupon rate)/2 10 11

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Answer 2

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