Calculate the value of the bond at the end of the fifth year as follows:
Value is $1,364.31656
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Calculate the value of the bond as follows:
Value of the bond is $1,264.12.
110(1-(1+0.07)^-15/ 0.07 + 1000/(1+0.07)^15
value at the end of the fifth year =1364.31
110(1-(1+0.1)^-5/0.1 +1364.31/(1+0.1)^5
value of the bond is = 1263.92
BOND VALUATION Bond X is noncallable and has 20 years to maturity, a 11% annual coupon,...
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