Par value is $1000 Not allowed to use P/Y and C/Y keys ...

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Accounting

Par value is $1000
Not allowed to use P/Y and C/Y keys image
4. A 3.5% semi-annual coupon bond with 19 years left to maturity is priced to offer a 6.5% yield to maturity. You believe that in one year, the yield to maturity will be 8%. If this occurs, then what would be the return of the bond in dollars (i.e., if you buy it now and sell it in one year, then how much money would you get)? a Notes: i. you are not being asked for a return percentage; rather you need to calculate the amount of money you will receive in dollars; please use the following formula: Return of bond in dollars - change in value plus interest earned in one year. [Please set your calculator to display 4 decimal places.)

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