If the current market rate is 8 interest compounded, Business Economics

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If the current market rate is 8 interest compounded

Contributed by Meenakshi Sundaram, Tennessee Tech University

A 6% coupon rate bond has a face value of $1000, pays interest semiannually, and will mature in 10 years. If the current market rate is 8% interest compounded semiannually, what is the bond's price?

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Business Economics: If the current market rate is 8 interest compounded

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Business Economics: If the current market rate is 8 interest compounded

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