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Jack is planning to buy a 9-year bond with semi-annual coupons and a coupon rate of...

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Finance

Jack is planning to buy a 9-year bond with semi-annual couponsand a coupon rate of 6.9 percent p.a. The face value is $1,000.Given an annual yield of 5.4 percent, what is the bond’s currentprice? (to the nearest cent)?

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4.2 Ratings (557 Votes)
Current price of the Bond The Price of the Bond is the Present Value of the Coupon Payments plus the Present Value of the Face ValuePar Value The Price of the Bond is    See Answer
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