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    Bond valuation

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    A $1,000 par value bond pays $50 in interest every six months. What will be the value of the bond if it matures in 30 months and the yield-to-maturity of similar risk bonds is 8%?

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    https://brainmass.com/business/bond-valuation/bond-valuation-26733

    Solution Preview

    Value of bond = Present value of the payoffs
    The discount rate is 8/2=4% ...

    Solution Summary

    Bond valuation is determined.

    $2.49

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