[Solved] A 2 5 year, 1 0 0 0 par value bond has a

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A 2 5 year, 1 0 0 0 par value bond has a 1 5 % annual payment coupon. The bond currently sells for $

25

year,

1000

par value bond has a

15 %

annual payment coupon. The bond currently sells for $

905 .

If the yeild to maturity remains at its current rate, what will the price be

5

years from now?

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