A $1,000 par value bond was issued five years ago at a 8 percent coupon rate. It currently has 25 years remaining to maturity. Interest rates on similar debt obligations are now 10 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Compute the current price of the bond using an assumption of semiannual payments. (Do not round intermediate calculations and round your answer to 2 decimal places.)
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A $1,000 par value bond was issued five years ago at a 8 percent coupon rate. It currently has 25 ye...
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