Calculate the value of a bond that matures in 19 years and has a $1,000 par value. The annual coupon interest rate is 14 percent and the​ market's required yield to maturity on a​ comparable-risk bond is 11 percent.

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Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 8FPE: Describe and differentiate between a bonds (a) current yield and (b) yield to maturity. Why are...
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Part 1
​(Related to Checkpoint​ 9.3) ​(Bond valuation)  Calculate the value of a bond that matures in
19
years and has a
$1,000
par value. The annual coupon interest rate is
14
percent and the​ market's required yield to maturity on a​ comparable-risk bond is
11
percent.
 
 
 

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Part 1
The value of the bond is
​$enter your response here.
​ (Round to the nearest​ cent.)
 
 
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