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# Price of a bond

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The Florida Investment Fund buys 90 bonds of the Gator Corporation through a broker. The bonds pay 8 percent annual interest. The yield to maturity (market rate interest) is 10 percent. The bonds a 25-year maturity Using assumption semiannual interest payments: (a) Compute the price of a a bond. (b) Compute the total value of 90 bonds.

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The Florida Investment Fund buys 90 bonds of the Gator Corporation through a broker. The bonds pay 8 percent annual interest. The yield to maturity (market rate interest) is 10 percent. The bonds a 25-year maturity Using assumption semiannual interest payments: (a) Compute the price of a a bond. (b) Compute the total value of 90 bonds.

(a) Compute the price of a a bond.

Calculating Price of bond
Price of bond= PVIF * ...

#### Solution Summary

The price of a bond has been calculated.

\$2.49