Assume a $1,000 Face value bond has a coupan rate of 6 percent paid semiannually and has

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Assume a $1,000 Face value bond has a coupan rate of 6 percent paid semiannually and has an eight-year life. If investors are willing to accept a 8 percent rate of return on bonds of similar quality, what is the present value or worth of this bond?

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Introduction to Finance Markets Investments and Financial Management

ISBN: 978-1118492673

15th edition

Authors: Melicher Ronald, Norton Edgar

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Posted Date: Feb 01, 2022 02:23 AM

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Assume a $1,000 Face value bond has a coupan rate of 6 percent paid semiannually and has

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we know that Present value of face value of bond F 1rT Present value of semiannual ... View the full answer

Introduction to Finance Markets Investments and Financial Management

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