Calculate the current price

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Q1. Calculate the current price of a $1,000 par value bond that has a coupon rate of 16 percent, pays coupon interest semi-annually, has 26 years remaining to maturity, and has a current yield to maturity (discount rate) of 19 percent.

Q2. Compute the price of a $1,000 par value, 12 percent (semi-annual payment) coupon bond with 21 years remaining until maturity assuming that the bond's yield to maturity is 18 percent?

Reference no: EM133022993

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