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Harrison Ford Auto Company has a $1,000 par value bond outstanding that pays 11 percent interest.

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Harrison Ford Auto Company has a $1,000 par value bond outstanding that pays 11 percent interest. The current yield to maturity on each bond in the market is 8 percent. Compute the price of these bonds for these maturity dates:

a. 30 years.
b. 15 years.
c. 1 year.

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Solution Summary

Harrison Ford Auto Company has a $1,000 par value bond outstanding that pays 11 percent interest.

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Bond Pricing
Given Data
Face value of the Bond =$1,000
Coupon Rate =11%
YTM =8%
Years to maturity =30 years
Frequency of interest payment= 1 time per ...

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