Interest will the bond pay each year
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If I have purchased a 15 yr, $1,000 face value bond that pays interest on a semi-annual basis for $1,324.23. If the market's effective annual required rate of return is 8.16% (4% semi-annually) how much interest does the bond pay each year?
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The solution explains how to determine the amount of interest the bond will pay each year.
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The price that I have paid is the present value of interest and principal discounted at the market rate.
For semi annual ...
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