Find out the value of the bond
Problem:
The face value of a bond is $1,000 and pays 10% annual coupon. It matures in 15 years.
Required:
Question: What is the value of the bond if the interest rate is 5%?
Note: Explain all calculation and formulas.
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Question: What is the value of the bond if the interest rate is 5%? Note: Explain all calculation and formulas.
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