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Assume a par value of $1,000. Caspian Sea plans to issue a 20.00 year, semi-annual pay...

Assume a par value of $1,000. Caspian Sea plans to issue a 20.00 year, semi-annual pay bond that has a coupon rate of 7.92%. If the yield to maturity for the bond is 8.41%, what will the price of the bond be?

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Answer #1

Calculating Price of Bond,

Using TVM Calculation,

PV = [FV = 1,000, PMT = 39.60, N = 40, I = 0.0841/2]

PV = $952.95

Bond Price = $952.95

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