Question
What is the value of a bond that has a par value of $1,000, a coupon rate of 7.35 percent (paid annually), and that matures
What is the value of a bond that has a par value of $1,000, a coupon rate of 7.35 percent (paid annually), and that matures in 10 years? Assume a required rate of return on this bond is 8.56 percent.
Round the answer to two decimal places.
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Public Finance and Public Policy
Authors: Jonathan Gruber
4th edition
1429278455, 978-1429278454
