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Calculate the purchase price of the $1,000 face value bond using the information given below. Issue date Maturity date Purchase date Coupon rate (%) Market
Calculate the purchase price of the $1,000 face value bond using the information given below.
Issue date | Maturity date | Purchase date | Coupon rate (%) | Market rate (%) |
Jan 31, 2009 | Jan 31, 2039 | July 31, 2011 | 5.1 | 6.0 |
-Bonds are paid semi-annually -Bond was orginally issued at its face value Bonds are redeemed at their face value at maturity market rates of return are compounded semianually Bond price $? (Rounded to nearest cent
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