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can you solve it Example 2: Calculating the price of a corporate bond. Calculate the price of an AA-rated, 20-year, 8% coupon (paid annually) corporate
can you solve it
Example 2: Calculating the price of a corporate bond. Calculate the price of an AA-rated, 20-year, 8% coupon (paid annually) corporate bond (Par value =$1,000 ) which is expected to earn a yield to maturity of 10%. Annualcoupon=CouponrateParvalue=.08$1,000=$80=PMTYTM=r=10%Maturity=n=20Priceofbond=PresentValueofcoupons+PresentValueofparvalue Step by Step Solution
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