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Bond Value

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You have the opportunity to buy a $1,000 bond which matures in 10 yrs. The bond pays 13% interest annually and you will receive interest payments every six months. The current yield is 10%. What is the most you would be willing to pay for this bond presently?

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This solution calculates the bond value.

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You have the opportunity to buy a $1,000 bond which matures in 10 yrs. The bond pays 13% interest annually and you will receive interest payments every six months. The current yield is 10%. What is the most you would be willing to pay for this bond presently?

Calculating Value of a bond
To calculate the price of the bond we need to calculate / read from tables the values ...

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