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Bond Value Given 10 Year Maturity Selling

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Which bond(s) has a 10% yield with an semiannual coupon payment of 8%. Either a $1000 face value bond with 5 year maturity selling for $964.54 or a $1000 face value bond with 20 year maturity selling for $828.36 or a $1000 face value bond with 10 year maturity selling for $875.39.

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Solution Summary

Excel spreadsheet attached shows how to calculate a bond's value given yield, coupon payment, maturity, etc.

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Hello

The easiest way to figure out this problem is to use the built-in functions in excel. Under the ...

Solution provided by:
Manal Elkhoshkhany, MBA
Education
  • BA, Ain Shams University, Cairo Egypt
  • MBA, California State University, Sacramento
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