A corporate bond has a face value of $1,000 with maturity date 20 years from...
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Accounting
A corporate bond has a face value of $1,000 with maturity date 20 years from today. The bond pays interest semiannually at a rate of 4% nominal per year based on the face value. The interest rate paid on similar corporate bonds has decreased to a current rate of 2%. Determine the market value of the bond. Correct answer given as $1,328, need to know how to solve it.
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