Estimate the bond current price

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Question - Diamond Corporation is planning a bond issue with an escalating coupon rate. The annual coupon rate will be 4.8% for the first 3 years, 5.8% for the subsequent 4 years, and 6.8% for the final 2 years. If bonds of this risk are yielding 5.8%, estimate the bond's current price. Face value of the bond is $1,000.

Reference no: EM133273632

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