What is the price of one bond

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Question - A bonds issue, raised 3 years ago with 5 years to maturity, has the following characteristics. Each bond has a par value of € 2000. The coupon rate is 2.9%. Coupons are paid annually. Bonds will be repaid in fine at par value. Currently, the issuer could raise debt at a 3.8% interest rate. Corporate tax rate is 34%. What is the price of ONE bond?

Reference no: EM133273706

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