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9-12 BOND'S CURRENT AND FUTURE PRICE Michael bought a bond with $1,000 par value paying a 5% annual coupon which has 7 years left
9-12 BOND'S CURRENT AND FUTURE PRICE Michael bought a bond with $1,000 par value paying a 5% annual coupon which has 7 years left until maturity, when its yield to maturity is 8%. a. Calculate the price Michael paid for the bond. b. If the yield curve is flat and rates remain the same, what would be the price of this bond two years from his date of purchase?
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Principles of Financial Accounting
Authors: Belverd E. Needles, Marian Powers
12th edition
978-1133940562, 1133940560, 978-1285608464, 1285608461, 1133939287, 978-0357693605, 978-1285607047, 128560704X, 978-1133939283
