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    Calculating fair value of a bond

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    Jackson Corporation's bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8%. The bonds have a yield to maturity of 9%. What is the current market price of these bonds?

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    Number of interest payments=n=12
    Maturity Amount=Par Value=M=$1000
    Annual ...

    Solution Summary

    Solution describes the steps to calculate current market price of a coupon paying bond.