[Solved] A 1 1 - year bond pays 6 % annually on a

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A 1 1 - year bond pays 6 % annually on a face value of $ 1 , 0 0 0 . If similar bonds

11 -

year bond pays

6 %

annually on a face value of $

1, 000 .

If similar bonds are currently yielding

4 %,

what is the market value of the bond? Use semi

-

annual analysis.

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