A bond with 22-year maturity was issued 5 years ago. The face value of this 11.92% quarterly

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A bond with 22-year maturity was issued 5 years ago. The face value of this 11.92% quarterly coupon paying bond is $2,000. Analysts find that the current yield to maturity of this bond is 12.36 percent.

Show your workings and find the value of this bond.

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Practical financial management

ISBN: 978-0324422634

5th Edition

Authors: William r. Lasher

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Posted Date: Apr 20, 2023 03:30 AM

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A bond with 22-year maturity was issued 5 years ago. The face value of this 11.92% quarterly

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To find the value of the bond we need to calculate the present value of its future cash flows which ... View the full answer

Practical financial management

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