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Problem:

You have the following bond: $1000 Par, 22 years to maturity, Mkt rate of 9.75%, coupon of 10.25%, compounded semi-annually. The PV of the bond is $1044.97.

Required:

Question: What contribution to this $1044.97 does the coupon payment 27 periods from today make to this figure? Enter as a positive number, with two decimal places.

Explain comprehensively and show all calculation.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91147346

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