How do we determine the present value of a bond when market rate differs from its contract rate?

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
Problem 16MC
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1. How do we determine the present value of a bond when market rate differs from its contract rate?

 

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