Calculate the value of a bond that will mature in 14 years and has a $ 1,000 face value The annual coupon interest rate is 5 percent, and the investors required rate of return is 7 percent ...

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Calculate the value of a bond that will mature in 14 years and has a $ 1,000

Question:

Calculate the value of a bond that will mature in 14 years and has a $ 1,000 face value. The annual interest rate is 5 percent, and the investor’s required rate of return is 7 percent.
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...