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What is the value (to the nearest cent) of a 7 year 8.6% coupon bond with...

What is the value (to the nearest cent) of a 7 year 8.6% coupon bond with a face value of $1,000. The yield-to-maturity on the bond is 11.1% and the bond makes semi-annual coupon payments.

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Answer #1

Value of the 7 year 8.6% bond= $ 880.51 calculated using PV function of Excel as follows:

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