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

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

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