What is the current value of the abc bond


Question: You are evaluating three different $1,000 maturity corporate bonds to buy. The ABC Company bond has a 7 percent annual coupon with 7 years remaining while the XYZ Company bond has a 10 percent annual coupon with 5 years remaining. You could also buy a newly issued 10-year bond from Widget Company of America that has a 12 percent coupon.

What is the current value of the ABC bond?

What is the current value of the XYZ bond?

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Finance Basics: What is the current value of the abc bond
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