Question: hello admin , my question from finance 1A, i want to ask how to solve this question and what is the formula you use to
hello admin , my question from finance 1A, i want to ask how to solve this question and what is the formula you use to solve it?
Linda buys a 10-year bond on the issue date at par value. The bond has a face value of $1,000 and pays yearly coupon. Linda has a yield to maturity of 5% p.a. Linda sells the bond to Jonathan immediately after she received the 3rd coupon payment. Jonathan wants to achieve a yield to maturity of 6%p.a. How much should Jonathan pay for the bond? (Correct to the nearest cent.)
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