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    renee serra's Avatar
    renee serra Posts: 1, Reputation: 1
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    #1

    Aug 14, 2007, 11:06 AM
    Calculating a bond price
    Could you please give me the answer to these 2 questions:

    1. Figure the present value of a previously issued bond.

    Purchase of a 10 year bond with 7 years to go to maturity, with a face value of 1,000 that pays an annual coupon of $40 and the interest rate is running at 5.5% how much should you pay for that bond now?

    2. Also, if you are thinking about buying a 10 year bond with 5 years to go to maturity, with a face value of 1,000 that pays an annual coupon of $50.00 and interest rate is 4.5%, what should you pay for this bond
    CliffARobinson's Avatar
    CliffARobinson Posts: 1,416, Reputation: 101
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    #2

    Mar 11, 2012, 05:28 PM
    We do not help people with homework, we provide direction and help with roadblocks. I have found a great Bond Price Primer from Investopedia.
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