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What is the current price and Macaulay's duration of a $1,000, 8% coupon bond that pays interest semi-annually if the bond matures in ten years and has a yield-to-maturity of 9.65%?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 2P

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What is the current price and Macaulay's duration of a $1,000, 8% coupon bond that pays interest semi-annually if the bond matures in ten years and has a yield-to-maturity of 9.65%?

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