What is the current value of a $1,000 bond with a 6% annual coupon rate (paid annually) that matures in 5 years if theappropriate discount rate is 2%. Please round your answer to the nearest hundredth.

I have multiplied formula by -1 because bond price is that amount that we pay, so payment goes from…

Answered: What is the current value of a $1,000…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

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What is the current value of a $1,000 bond with a 6% annual coupon rate (paid annually) that matures in 5 years if the appropriate discount rate is 2%. Please round your answer to the nearest hundredth.