# You want to buy a bond with a face value of $1000, and an annual coupon of 8% paid quarterly.

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## Question:

You want to buy a bond with a face value of $1000, and an annual coupon of 8% paid quarterly. The annual market rate (the discount rate) is 10% now. This bond will mature in 10 years. The fair value of this bond today should be $

Assume the discount rate in year 2 goes down to 8%. All other info is the same. The fair value of this bond in year 2 is $

complete in this format:

NPR |

Coupon Rate |

I/Y or Rate |

PMT |

PV |

FV |

**Related Book For**

## Introduction to Operations Research

ISBN: 978-1259162985

10th edition

Authors: Frederick S. Hillier, Gerald J. Lieberman

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