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An Exxon bond has a yield to maturity of 19 years and a coupon interest rate...

An Exxon bond has a yield to maturity of 19 years and a coupon interest rate of 4.80%. If the market requires a yield to maturity of 6.5% on similar risk bonds, what is the value (price) of this bond?

Please show all work in arriving at a solution!

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Answer #1

Assuming Par Value of Bond is 100

Value of Bond = PV of Cash flows from it.

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