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Compute the price of a $1,000 par value, 12 percent (semi-annual payment) coupon bond with 21...

Compute the price of a $1,000 par value, 12 percent (semi-annual payment) coupon bond with 21 years remaining until maturity assuming that the bond's yield to maturity is 14 percent? (Round your answer to 2 decimal places and record your answer without dollar sign or commas).

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Answer #1

Calculate the price of the bond as follows:

Therefore, the price of the bond is 865.48.

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