What is the bond price and bond market price

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Problem 1: A 4-year bond pays interest annually. Its par value is $1,000 and its coupon rate equals 6%. If the market's required return on the bond is 7 percent, what is the bond's market price?

Problem 2: A bond that matures in 2 years makes semiannual interest payments. Its par value is $1,000, its coupon rate equals 4%, and the rate of return is 3%. What is the bond price?

Reference no: EM132745428

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