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02-05-2020
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Suppose that you own a bond with $1000 face value, a 5% coupon rate, a maturity of 10 years, and the market interest rate is 2%. What is the current price of the bond? $

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Walexis Walexis

02-05-2020

Explanation:

Bond, will pay an interest rate of 5% per yearBond: 1,000 ⋅ (1 + 0.05)3= 1,157.63

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