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Present value of a bond

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Write the equation which expresses the present value (or price) of a bond that has an 8% coupon (annual payments), a 4-year maturity, and a principal of $1,000, if yields on similar securities are 10%

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The solution explains how to calculate the present value of a bond.

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The interest amount is an annuity and the principal amount is a lump sum. The interest amount is 1,000X8%=$80, ...

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