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QUESTION
A bond with a $1,000 par value has a 4 percent annual coupon rate. It will mature in 4 years, and annual coupon payments are made at the end of each...
A bond with a $1,000 par value has a 4 percent annual coupon rate. It will mature in 4 years, and annual coupon payments are made at the end of each year. Present annual yields on similar bonds are 3.5 percent. What should be the current price?
FVYieldCoupon paymentYears to maturityNperBond Price PV 10004%302080($760.85)