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Finding the current price of the bond

Problem:

Suppose you bought a bond that will pay $1,000 in 20 years. No intermediate coupon payments will be made. If the appropriate interest rate is 8%.

a. What is the current price of the bond?

b. What will the price be 10 years from today?

c. What will the price be 15 years from today?

Assume the interest rate does not change.

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Finance Basics: Finding the current price of the bond

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Finance Basics: Finding the current price of the bond

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