Exactly 1 year ago we invested $6,757 in a 4 year bond with a coupon rate of 5.25% and annual coupon payments. Since then interest rates have dropped and currently 3 year bonds have a coupon rate of 2.44%. What is the present value of the bond I purchased 1 year ago?

Answer rating: 100% (QA)

We can find the present value of the bond using the following steps 1 Calculate the annual coupon pa... View the full answer