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Define what is the price of a coupon bond

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Reference no: EM132758390

Question: Using semi-annual compounding, what is the price of a 5 percent coupon bond with 10 years left to maturity and a market interest rate of 7.2 percent? Assume that interest payments are paid semi-annually and that par value is $1000. Most importantly, please provide the formula used to solve this problem and instructions for using the formula so that a complete novice would be able to replicate answers.

Reference no: EM132758390

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