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Bond Valuation A 20-year, 8% semiannual coupon bond with a par value of $1,000 sells for $1,100. (Assume that the bond has just been issued.)
Bond Valuation A 20-year, 8% semiannual coupon bond with a par value of $1,000 sells for $1,100. (Assume that the bond has just been issued.) 20 Basic Input Data: Years to maturity: Periods per year: Periods to maturity: Coupon rate: Par value: Periodic payment: Current price 8% $1,000 $1,100 c. What would be the price of a zero coupon bond if the face value of the bond is $1,000 in 3 years and if the yield to maturity of similary bonds in the market is 5.75% Value of bond
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