A 2 5 - year bond with par value $ 4 0 0 0 and annual coupons

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Question:

25 -

year bond with par value $

4000

and annual coupons of

7 %

that redeems for C dollars is purchased with a discount of $

875 .

The bond yields an annual effective rate of

8.5 %

if it is held to maturity. Find the price of the bond.

Give your answer to two decimal places.

Posted Date: May 18, 2024 10:15 PM

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A 2 5 - year bond with par value $ 4 0 0 0 and annual coupons

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