How would you solve the following question, using a financial calculator step by step, and how i
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How would you solve the following question, using a financial calculator step by step, and how i would tackle this question step by step Thank You !
A firm has just issued (on January 1, 2017) a bond that has a face value of $1,000, a couponrate of 6 percent paid semi-annually (on June 30 and December 31), and matures in 8 years.The bonds were issued with a yield to maturity of 7%.What price were the bonds issued at?Assume that on July 1, 2019, the bond trades to earn an effective annual yield of 8%.At what price should this bond be trading for on July 1, 2019?
(a) PRICE WHEN ISSUED
(b) PRICE ON JULY 1, 2019
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