Formulas E(R) on non-benchmark Bonds =r=Ry+RP, PV of Bond =SUM [C/(1+k) + C/(1+4)2 + ... + (C+par)/(1+k)"): DUR=SUM{[Cz(1)/(1+1)] + [C (2)/(1+k) +...+ [C,(n)/(1+k)"]}/SUM{[C/(1+k)] + [Cy(1+k}+...+ [C. (1+0)"): DURDUR /(1+k): PESUM{[(C+Prin)/(1+k)] + [(C+Prin)/(1+k) ++ [(C+Prin)(1+k)")); R=(SP-INV - Loan +D)/INV: R-Profit / Investment A bond with a $1,000 par value has an 8% annual coupon rate. It will mature in 5 years, and annual coupon payments are made at the end of each year. Present annual yields on similar bonds are 4%. What should be the current price? $1.178.07 $1.069.31 $84.03 $1,000 5840.29