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Lets assume the following two year bond (time to maturity: two years from today): Face value 1000 EUR; Fixed coupon yield 8,7% (coupon is paid
Lets assume the following two year bond (time to maturity: two years from today):
Face value 1000 EUR;
Fixed coupon yield 8,7% (coupon is paid once a year at the end of each year);
Current discount rate is 7,9%.
Calculate and present the current market price of the bond (in EUR) and present answer in numerical format (without adding the EUR).
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