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Bond Valuation

A bond recently issued matures in 15yrs. They have a par value of $1000 and an annual coupon of 6%. If the current market interest rate is 8% at what price should the bonds sell?

I have tried using Excel and the numbers don't make sense when I put them into the formula.

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The bond will sell at the Present Value of interest and ...

Solution Summary

The solution explains how to determine the current price of the bond.