Question: Q12 1. Bond E has the following features: Face value = $1,000, Coupon Rate = 8%, Maturity = 5 years, Yearly coupons The market interest

Q12

1. Bond E has the following features:

Face value = $1,000, Coupon Rate = 8%,

Maturity = 5 years, Yearly coupons

The market interest rate is 3.93%

If interest rate remains at 3.93% for the life of the bond (i.e., 3.93 years), what is the price of Bond E in year 5?

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