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Finding the Beginning (Buy) Price of a Bond

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Question: You buy an 8% annual coupon bond that has a 15 year maturity and a required return of 12%. The par value is $1,000. You sell the bond five years later when the required return is 10%. What is the beginning (buy) price of the bond?

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Solution Summary

This solution is provided within an Excel spreadsheet which lays out the problem neatly and provides all of the required formulas in a clear manner.

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