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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 (%) |
| Dec 15, 1995 | Dec 15, 2025 | June 15, 2004 | 5.60 | 7.6 |
Assume that
- Bond interest is paid semiannually.
- The bond was originally issued at its face value.
- Bonds are redeemed at their face value at maturity.
- Market rates of return are compounded semiannually. Question: What is the bond price?
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Economics Business And Islamic Finance In ASEAN Economics Community
Authors: Patricia Ordoñez De Pablos Mohammad Nabil Almunawar , Muhamad Abduh
1st Edition
1799822575,1799822605
