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Pricing Bonds with Coupons

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What is the price of a 7% coupon bond with 5 years remaining to maturity to the current market required return (e.g., yield) is 8%? What is the price of the same bond if the current market required return increases to 10%?

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Solution Summary

Basic calculations to find a bond's price with varying years to maturity and return.

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FV = 1000
annual payment = 1000*7% = 70
number of periods = 5
Yield Rate = 8%
By a ...

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