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Assume that 7 years ago (in 2013) a bond was issued with 30 years until maturity, the bond was sold at par ($1,000), and carried
Assume that 7 years ago (in 2013) a bond was issued with 30 years until maturity, the bond was sold at par ($1,000), and carried a 12% coupon interest rate (icoupon = 0.12). If by this date, in 2020, market interest rates for a bond of similar risk and maturity is currently 9% (r = 0.09), what will be the market price of this bond today (2020) given that seven (7) coupon payments have been made? Bond Price Today (PV2020) =
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