What is the value of a bond with a face value of seven years

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Problem 1: A company has issued a series of debentures that have a face value of $500 and pay a quarterly coupon at a coupon rate of 6.7%. What is the value of each coupon payment?

Problem 2: What is the value of a bond with a face value of $500, 7 years to maturity and a quarterly coupon paid at a coupon rate of 7.1%, if it is trading at a yield of 5.4% p.a.?

Reference no: EM132882813

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