Calculate the price of a 5-year bond that has a coupon of 6.5 per cent and pays annual interest. The current market rate is 5.75 per cent and the bond has a face value of $1000.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
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Calculate the price of a 5-year bond that has a coupon of 6.5 per cent and pays annual interest. The current market rate is 5.75 per cent and the bond has a face value of $1000.

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