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Bond Valuation and Payment

What would you pay for a bond that pays an annual coupon of $35, has a face value of $1,000, matures in 7 years, and has a yield to maturity (YTM) of 8%?

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The price that we pay is the present value of the interest and the principal amount. The annual ...

Solution Summary

The solution explains how to calculate the price of a bond

$2.19