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As with any financial instrument, the price of a bond is the present value of the future cash flows. What is the price of a
As with any financial instrument, the price of a bond is the present value of the future cash flows. What is the price of a bond with semiannual coupon payments and the following characteristics?
| Coupon rate |
|
| 8.00% |
| Years to maturity |
| 10 | |
| Yield to maturity |
| 7.50% | |
| Par value |
|
| $ 1,000 |
a.
$478.89
b.
$1,034.74
c.
$1,000.47
d.
$555.85
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