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Jeremy Is Interested in a Bond Which Matures in 20

Question 46

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Jeremy is interested in a bond which matures in 20 years. It has a face value of $8 000 and a coupon rate of 10%. Like most bonds it pays the bearer an interest payment every 6 months. How much is it worth today?

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P = 8 000(P/F, 5%, 4...

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