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Step2247 [10]
3 years ago
8

Baruch co. has 8% coupon bonds on the market that have 10 years left to maturity. The bonds will make annual payments. If the YT

M on these bonds is 6%, what is the current bond price
Business
1 answer:
IrinaVladis [17]3 years ago
5 0

Answer:

the current bond price is $1,147.20

Explanation:

The computation of the current bond price is shown below:

Given that

NPER = 10

RATE = 6%

PMT = $1,000 × 8% = $80

FV = $1,000

Here we assume the future value be $1,000

The formula is shown below:

= -PV(RATE,NPER,PMT,PV,TYPE)

After applying the above formula, the current bond price is $1,147.20

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pochemuha

Answer:

See below

Explanation:

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