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    Valuing Bonds
    Linux has issue a bond with the following characteristics:
    Par: $1,000
    Time to maturity: 20years
    Coupon rate: 8 percent
    Semiannual payments
    Calculate the price of this bond if the YTM is:

    a. 8 percent
    b. 10 percent
    c. 6 percent.

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    Solution Preview

    Bond Price or (Pc) has a simple formula. Like most finance ...

    Solution Summary

    Corporate finance question on valuing bonds solved and explained.