Determine how much the bond should sell for today

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A bond matures in 2022 and the year is now 2012.The bond has a face value of $100000 and pays a 2% annual coupon.Interest is paid on 31 December annually for each year. New annual coupon bonds with similar risk and Maturity are currently yielding 12 percent. Determine how much the bond should sell for today

Reference no: EM132384056

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