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Calculate the price of the bond in the secondary market

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Reference no: EM132765390

Question - An existing Treasury bond has been issued with a face value of $1000. The bond pays half-yearly coupons of 7% per annum, and matures on 15 November 2017. Assume that the bond is sold on 15 July 2014. Current yields for similar Treasury bonds are 8% per annum. Calculate the price of the bond in the secondary market.

Reference no: EM132765390

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