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Jackson Corporation's bonds have 10 years remaining to maturity. Interest is paid annually, the bonds have...

Jackson Corporation's bonds have 10 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 7%. The bonds have a yield to maturity of 8%. What is the current market price of these bonds?

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Answer #1

Calculate the present value as follows:

Current maret price is $1,070.24.

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