Question: How do I solve it? Ans: 786 Suppose a bond with maturity in 20 years and semiannual coupons has a face value equal to 1,000,

How do I solve it?

How do I solve it? Ans: 786 Suppose a bond with

Ans: 786

Suppose a bond with maturity in 20 years and semiannual coupons has a face value equal to 1,000, its coupon rate is 5%. If the yield-to-maturity (expressed as an APR with semiannual compounding) is equal to 7%, what is the price of the bond? (Round your answer to the nearest integer)

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