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11 year 8% annual coupon bond has a yield to maturity of 11.2% with a par...

11 year 8% annual coupon bond has a yield to maturity of 11.2% with a par value of $1,000. What is the price of this bond? (Round to two decimal places)

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Answer #1

  

_______________________________

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Value of Bond =

Where r is the discounting rate of a compounding period i.e. 11.2%

And n is the no of Compounding periods 11 years

Coupon 8%

=

= 803.16

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