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ABC Energy issued a 5-year bond 2 years ago. The par value is $1000, the coupon rate is 8% paid semi-annually. What is the bond's
ABC Energy issued a 5-year bond 2 years ago. The par value is $1000, the coupon rate is 8% paid semi-annually. What is the bond's fair market value or price today if market interest is 10% per year? Question 5 options: The fair market value of the bond is ~$949.24 per $1,000 face value. All answers are correct. To calculate the fair market value of the bond, we need to estimate the coupon payment correctly. Based on the information provided, there are two coupon payments a year, each payment is $40 = PMT. The bond is trading at a discount
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