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PLEASE ANSWER FAST!!! 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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PLEASE ANSWER FAST!!!

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? $

User Xinthink
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1 Answer

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Step-by-step explanation:

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

User Miguel Ribeiro
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