Assume you bought a bond that will pay 1000 in twenty 20, Ask an Expert

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problem: Assume you bought a bond that will pay $1,000 in twenty (20) years. No intermediate coupon payments will be made. If the appropriate interest rate is 8 percent.

[A] find out the current price of the bond?

[B] find out the price be 10 years from today?

[C] find out the price be 15 years from today?

Suppose that the interest rate will not change over the life of the bond.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M921135

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