Western power has outstanding bond with face value

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Western Power has an outstanding bond with a face value of 20000 and matures in 20 years. The bond makes no payments for the first 6 years, then pays 828 every six months over the subsequent 8 years, and finally pays 1116 every six months over the last 6 years. If the required return on both these bonds is 5.1 per cent compounded semiannually, what is the current bond price?

Reference no: EM133638040

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