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In: Finance

Use the bond term's below to answer the question Maturity 7 years Coupon Rate 4% Face...

Use the bond term's below to answer the question
Maturity 7 years
Coupon Rate 4%
Face value $1,000
Annual Coupons
YTM 3% (interest rate)

Assuming the YTM remains constant throughout the bond's life, what is the bond's price in year 4?

A. $1,028.29

B. $1,083.55

C. $1,008.12

D. $1,062.30

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

As nothing was mentioned excel is used. If you need with FINANCIAL formula, let me know, will do that also. Thank you.

ANSWER : A : 1028.29

jeff jeffy answered 1 month ago
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