What is the price you should be able to receive

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Assume you purchased a bond with the following particulars: $1000 bond, 8% coupon, semi-annual interest payments, 5 year bond. One year after you purchased the bond, rates on comparable debt have declined to 7%. If you need to sell your bond, what is the price you should be able to receive? (current bond value)

Reference no: EM132036931

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