Question: Hi there was just having a problem with this revision question as well, cannot seem to find the right formula to solve this one. thank

Hi there was just having a problem with this revision question as well, cannot seem to find the right formula to solve this one. thank you for your time

Question:

The details for a bond issued by company ABC are as follows:

issue date 8th may 2000

maturity date8th may 2030

annual coupon rate (semiannual coupons) 9%

face value $1000

required:

If todays date is 8th of may 2004, how much would you pay for the bond if you require 12% p.a as return

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