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    Current Bond Pricing

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    A company has a $1000 par value bond outstanding paying annual interest of 8%. The bond matures in 20 years. If the present yield to maturity for this bond is 10%, calculate the current price of the bond. Use annual analysis.

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    https://brainmass.com/business/bond-valuation/current-bond-pricing-107195

    Solution Preview

    FV = par value = 1000
    Annual payment = 1000 * 8% = 80
    Number of years ...

    Solution Summary

    A company has a $1000 par value bond outstanding paying annual interest of 8%. The bond matures in 20 years. If the present yield to maturity for this bond is 10%, calculate the current price of the bond. Use annual analysis.

    $2.19

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