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Calculating the present value of a bond investment

Calculate the present value of a bond investment

Response to the following problem:

Itaska Corp. purchased 20 $1,000 4% bonds of Citigroup when the market rate of interest was 3%. Interest is paid semiannually, and the bonds will mature in five years. Using the PV function in Excel, compute the price Itaska paid (the present value) for the bond investment.

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Financial Accounting: Calculating the present value of a bond investment

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