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What is the current price for the bond

Problem:

Suppose a bond with 5 year maturity with face value $100 and 8% coupon rate which is equal to the current bank interest rate what is the corresponding cash flow (sequence) generated by this 5 year coupon.

If the bond issuer decided to increase their discount rate to 9.2% what is the current price (present value) for this bond.

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Finance Basics: What is the current price for the bond

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Finance Basics: What is the current price for the bond

Reference No:- TGS02055784

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