Three years ago, you purchased a bond with a coupon rate of 8% and 9 years left
Question:
Three years ago, you purchased a bond with a coupon rate of 8% and 9 years left until maturity. The bond pays a coupon semiannually. Today, the market requires a return of 6% for a similar investment to your bond. What is the current value of your bond?
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Step by Step Answer:
To calculate the current value of your bond you can use the present value formula for bonds The pres...View the full answer
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Related Book For 
Principles Of Managerial Finance
ISBN: 9781292018201
14th Global Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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