A 1000 bond has a coupon of 8 percent and matures after ten


A $1,000 bond has a coupon of 8 percent and matures after ten years. Assume that the bond pays interest annually.

  1. What would be the bond's price if comparable debt yields 10 percent?
  2. What would be the price if comparable debt yields 10 percent and the bond matures after five years?

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Finance Basics: A 1000 bond has a coupon of 8 percent and matures after ten
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