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. Imagine that back in 2007, in the midst of the financial crisis (when market interest rates were very low), IBM issued a 25 year,
. Imagine that back in 2007, in the midst of the financial crisis (when market interest rates were very low), IBM issued a 25 year, non-callable bond, with a 4% coupon rate (icoupon = 0.04) and a $1,000 maturity value (FV = $1,000). Note that this 2007 issue date, based on its 25-year term, means the bond will mature in 2032. If today, in 2021, the current market interest rate for this bond is 6.75% (or rD = 0.0675) what will be the market price of this IBM bond knowing that 14 coupon payments have already been made by IBM?
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