Question
You are considering investing in an 14% coupon rate bond with a three-year maturity and a face value of $1000. You observe the following prices
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You are considering investing in an 14% coupon rate bond with a three-year maturity and a face value of $1000. You observe the following prices for discount, or zero-coupon, bonds with face values of $100:
| Maturity | Price |
| 1 | 94 |
| 2 | 89 |
| 3 | 80 |
What is the price of the bond today?
(please round your answer to the nearest penny)
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Real Estate Finance
Authors: Walt Huber, Levin P. Messick
5th Edition
0916772438, 9780916772437
