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Compute the market price of the bond

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Question: (a) Calculate the market price of a bond having the following characteristics: face value of $1,000, matures in 2 years, coupon rate of 9 percent, and effective yield of 12 percent.

(b) Compute the market price of the bond in part (a) assuming that it matures in 20 years.

(c) What would be the market value of the bond if it had no maturity (perpetual)?

Reference no: EM131748695

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