A $2000 bond with annual coupons is redeemable at par in five years. If the first coupon

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A $2000 bond with annual coupons is redeemable at par in five years. If the first coupon is $400, and subsequent annual coupons are worth 75% of the previous year’s coupon, find the purchase price of the bond that would yield an interest rate of 10% compounded annually.
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Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

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