Question: Given the following information regarding bond valuation: A $1000 face value, Coupon rate is 10% (interest payable semiannually) The bond has 20 years remaining until

Given the following information regarding bond valuation:

  • A $1000 face value,
  • Coupon rate is 10% (interest payable semiannually)
  • The bond has 20 years remaining until maturity
  • The rate of return required by the market on this type of bond is 8% compounded semiannually.

What is the market value of this bond today?

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