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What price do you pay for the bond

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Reference no: EM131657471

Consider a corporate bond with a face value of $500,000, a coupon rate of 7% and a maturity date of January 15, 2022.

Suppose that you purchase this bond on January 15, 2018. Bonds with similar risk characteristics are yielding 5%. 

What price do you pay for the bond? Show your work.

Reference no: EM131657471

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