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    Bond Valuation

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    What is the market value of a bond that will pay a total of forty semiannual coupons of $50 each over the remainder of its life? Assume the bond has a $1,000 face value and an 8% yield to maturity (YTM).

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    Solution Preview

    The market value is the present value of all the coupons and the principal amount. The coupons are an ...

    Solution Summary

    The solution explains how to calculate the value of a bond.