What is the current selling price


Problem:

A $1,000 corporate bond with 20 years to maturity pays a coupon of 7% (semi-annual) and the market required rate of return is a) 6.6% b)13%. What is the current selling price for a) and b)?

Note: Please explain comprehensively and give step by step solution.

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Finance Basics: What is the current selling price
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