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John bought a 9% four-year bond with a par value of $100. The bond pays the coupon payments semi-annual. The current discount rate is 10%.
John bought a 9% four-year bond with a par value of $100. The bond pays the coupon payments semi-annual. The current discount rate is 10%. Please calculate the PV of the principal amount.
a) $58.77 | ||
b) $67.68 | ||
c) $78.89 | ||
d) $100.00 |
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