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A $1,000 par, 8 percent coupon rate Treasury bond maturing in three years is priced to yield 7 percent in the market. The market price of the bond is (assume semiannual compounding)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 14P: Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has...

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A $1,000 par, 8 percent coupon rate Treasury bond maturing in three years is priced to yield 7 percent in the market. The market price of the bond is (assume semiannual compounding)

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