What is the bond present value

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Reference no: EM132211727

Question - Hunter believes that a bond he is purchasing today has an effective annual discount rate of 20%. The bond has 15 remaining coupons of $50 each. The first coupon will be paid in 11 months, and each subsequent payment will be one year after. On the date of the last coupon payment the bond will pay out a face value of $550. What is the bond's present value if Hunter's assumption of the discount rate is correct?

Reference no: EM132211727

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