Use the time value of money

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let’s assume the par value of a bond issued by X corporation is $1,000 with a coupon rate of 8% annually. If the current market interest is 5% and the bond matures in 2 years, what would be the bond price? In other words, if you are an investor and want to buy this bond from the secondary market, how much are you willing to pay for it? Use the Time Value of Money

Reference no: EM131016257

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