An 8%, annual coupon, $1000 par value, five-year bond yield 6%. If yields remain unchanged, what...

Question

Question

An 8%, annual coupon, $1000 par value, five-year bond yield 6%. If yields remain unchanged, what will be its price in one year?

Answer 1

Answer #1

Price of the bond present value of coupon payments +present value of face value -PMT (1-(1/(1))/r+ (face value/(1+r)rn - $1,0

Answer 2

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