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What is the present value of a bond

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Reference no: EM133100342

Question - In year 1, the par value bond is $1015, the annual coupon rate is 3.2%, and the bond is currently trading at $1515.25. In year 2, the 5.5% annual coupon and Par Value bond is $1420.to mature in 12 years, and similar bonds are currently yielding 4%.In year 3, the same parameters as year 2, only similar bonds are yielding 3.5%. For year 4, it is a $1950 par value bond maturing in 5 years. Similar bonds are yielding 4.5%.

Year 1: What is the current market yield for your bond with the indicated annual coupon rate and maturity?

Year 2: What is the Present Value of the annual coupon, par value bond to maturity?

Year 3: What is the Present Value of a bond using the same data you are given in Year 2, but with the similar bond yield provided?

Year 4: What is the Present Value of the zero-coupon bond to maturity?

Reference no: EM133100342

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