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A corporate bond has a face value of $10,000, a coupon rate of interest of 8.25%...

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Finance

A corporate bond has a face value of $10,000, a coupon rate ofinterest of 8.25% per annum, payable semi-annually, and six and ahalf years remaining to maturity. The market interest rate forbonds of similar risk and maturity is currently 9.5% per annum,what is the present value of the bond?

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3.7 Ratings (546 Votes)
Present Value of the Bond The Present Value of the Bond is the Present Value of the Coupon Payments plus the Present Value of the face Value Face Value of the bond 10000 Semiannual    See Answer
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Transcribed Image Text

A corporate bond has a face value of $10,000, a coupon rate ofinterest of 8.25% per annum, payable semi-annually, and six and ahalf years remaining to maturity. The market interest rate forbonds of similar risk and maturity is currently 9.5% per annum,what is the present value of the bond?

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