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An annual bond has a face value of $1,000, a coupon rate of 7.4%, a yield...

An annual bond has a face value of $1,000, a coupon rate of 7.4%, a yield to maturity of 6.2% and has 12 years remaining to maturity. What is the price of the bond?

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Expert Solution

Calculations-

Here,
Fv is the future value of bond
rate is the periodic interest rate
nper is no. of periods
pmt is the periodic payments
Pv is the present value of bond
type = 0 if the amount is paid at the end of the year ,1 if it is paid at the beginning.

Please upvote if the ans is helpful.In case of doubt,do comment.Thanks.

jeff jeffy answered 2 years ago
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