Question: show all work Problem 3. Allison bought a bond when it was issued by ABC Corporation 20 years ago. The bond, which has a $1,000

show all work

Problem 3. Allison bought a bond when it was issued by ABC Corporation 20 years ago. The bond, which has a $1,000 face value and a coupon rate equal to 10 percent, matures in eight years. Interest is paid every six months; the next interest payment is scheduled for six months from today. If the yield on similar risk investments is 8 percent, what should be the current market value (price) of the bond? ( 7 points)

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