A $25,000 par value bond pays semi-annual coupons at j₂ = 7%.The book value of the bond after 14 coupons to yield j₂ = 8% is $23,679.50.What is the book value after the next coupon (after the 15^th coupon)?

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The book value of a bond increases when the coupon rate is higher than the yield rate. After the 15th coupon, the book value will be the previous book value plus the difference between the coupon payment and the interest on the book value at the yield rate.

A $25,000 Par Value Bond Pays Semi-Annual Coupons at J2

A $25,000 Par Value Bond Pays Semi-Annual Coupons at J₂