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Johnson & Johnson issues a 7 percent coupon bond with 7 years maturity, $1,000 face (par) value, and semi-annual payments. If the yield to
Johnson & Johnson issues a 7 percent coupon bond with 7 years maturity, $1,000 face (par) value, and semi-annual payments. If the yield to maturity of this bond is 12 percent, find the bond's price.
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Step: 1
To calculate the price of a bond we can use the present value formula In this case since ...
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th International Edition
1265533199, 978-1265533199
