A bond offers a $50 coupon, has a face value of $1,000, and 4 years to maturity. If the interest rate is 5.0%, what is the value of this bond?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
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A bond offers a $50 coupon, has a face value of $1,000, and 4 years to maturity. If the interest rate is 5.0%,
what is the value of this bond?
Transcribed Image Text:A bond offers a $50 coupon, has a face value of $1,000, and 4 years to maturity. If the interest rate is 5.0%, what is the value of this bond?
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