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    Calculate price of a bond

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    Grossnickle Corporation issued 20-year, non callable, 7.8% annual coupon bonds at their par value of $1,000 one year ago. Today the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years to maturity?

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    Solution Summary

    This solution gives the requested price but also shows how this is done and provides an excel template to compute the price of any bond given the bond details.