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Bond Valuation

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GE bonds have 10 years remaining to maturity. Interest is paid annually;they have a $1000 par value;the coupon interest rate is 8%; and the yield to maturity is 9%.

What is the bond's current market price?

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Solution Summary

The solution explains how to calculate the current market price of bonds.

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The current market price is the present value of interest and principal. The annual interest is 1,000X8%=$80, principal ...

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