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A $1000 face value bond currently has a yield to maturity of 6.69%. The bond matures...

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Finance

A $1000 face value bond currently has a yield to maturity of6.69%. The bond matures in three years and pays interest annually.The coupon rate is 7%. What is the current price of this bond?

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3.7 Ratings (468 Votes)
Current Price of the Bond The Current Price of the Bond is the Present Value of the Coupon Payments plus the Present Value of the face Value Par Value of the bond 1000    See Answer
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A $1000 face value bond currently has a yield to maturity of6.69%. The bond matures in three years and pays interest annually.The coupon rate is 7%. What is the current price of this bond?

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