Determine the market value of the bond


Problem

A corporate bond has a face value of $1000 with maturity date 20 years from today. The bond pays interest semiannually at a rate of 8% per year based on the face value. The interest rate paid on similar corporate bonds has decreased to a current rate of 6%. Determine the market value of the bond.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Determine the market value of the bond
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