Suppose that you purchase this bond on january 15 2018


Consider a corporate bond with a face value of $500,000, a coupon rate of 7% and a maturity date of January 15, 2022.

Suppose that you purchase this bond on January 15, 2018. Bonds with similar risk characteristics are yielding 5%. 

What price do you pay for the bond? Show your work.

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Finance Basics: Suppose that you purchase this bond on january 15 2018
Reference No:- TGS02453002

Now Priced at $10 (50% Discount)

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