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Assume a par value of $1,000. Caspian Sea plans to issue a 6.00 year, semi-annual pay...

Assume a par value of $1,000. Caspian Sea plans to issue a 6.00 year, semi-annual pay bond that has a coupon rate of 8.02%. If the yield to maturity for the bond is 7.69%, what will the price of the bond be?

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Answer #1

Calculate the price of the bond as follows:

Price of the bond is $1,015.63.

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