Calculate the fair market price

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Please provide step by step solution and explanation of the following question:

Given the following information about a corporate bond, calculate the fair market price:

  • Face/Par Value = $2000
  • Yield-to-maturity (YTM) = 15%
  • 5 years left to maturity
  • Coupons paid semi-annually
  • Coupon rate = 16%

Reference no: EM132818357

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