Find what price should bond be sold

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Reference no: EM132735094

An outstanding bond from, Judy's delicacy, a cupcake manufacturer, has a coupon interest of 6% that is paid semi-annually, a par value of $1,000 and will mature in the next 10 years. The required rate of return for similar investments is currently 8%.

Problem 1: At what price should the bond be sold if it was purchased on 1st November 2013, is due to mature on 31st October 2023 but was instead sold on 1st November 2017?

Reference no: EM132735094

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