A bond that matures in four years, has a coupon rate of 10% and has a maturity value of US$ 100. The bond pays interest annually and has a discount rate of 8%. Calculate the present value of bond.

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
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ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
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Chapter7: Bonds And Their Valuation
Section: Chapter Questions
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Question 11
A bond that matures in four years, has a coupon
rate of 10% and has a maturity value of US$ 100.
The bond pays interest annually and has a
discount rate of 8%.
Calculate the present value of bond.
Transcribed Image Text:Question 11 A bond that matures in four years, has a coupon rate of 10% and has a maturity value of US$ 100. The bond pays interest annually and has a discount rate of 8%. Calculate the present value of bond.
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