Illustrate what is the bond''s current market price

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Reference no: EM1363201

asumme that you on January 2, 2010, purchased a 10-year government bond at par value USD 1,000 paying 5% annual coupon on December 31. each year until maturity. The bond's principal is redeemed (repaid) on December 31, 2019. Currently, the bond is priced to yield a return of 5% per year.

Illustrate what is the bond's current market price?

Reference no: EM1363201

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