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Estimating the current value of given bond

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The Morrissey Company's bonds mature in seven years, have a par value of $1,000, and make an annual coupon payment of $70. The market interest rate for the bonds is 8.5%. What is the bond's price?

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Solution estimates the current price of bond in the given case.

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Coupon amount=C=$70
Number of periods=n=7
Required rate of ...

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  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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