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    Price of the bond

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    A firm wants to issue a 5 year bond with a coupon rate of 8% yield to maturity of 6%, and interest payments made semi-annually.

    1) At what price will the firm be able to sell the bond?

    2) How many bonds must the firm sell to raise $1,000,000 in capital?

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    https://brainmass.com/business/bond-valuation/price-bond-83990

    Solution Preview

    1) At what price will the firm be able to sell the bond? Â

    Price of Bond= Present Value of Inflows=341+744= $1085

    For workings see below:

    Present value of inflows = Present value of ...

    Solution Summary

    This provides the steps to calculate the Price of the bond.

    $2.19

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