Find the purchase price of bond with given face value


James wants to purchase a bond with face value of 5,000. The bond rate is 5 percent, payable annually. He plans to hold the bond until maturity 10 years from now, collecting the original face value. He would like to have 7.8 percent yield on his investment. What should the purchase price be?

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Finance Basics: Find the purchase price of bond with given face value
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