Market Interest, Bond Worth, and Market Rate
October 1st, 2022
Instructions: Assume a government bond has a face value of $1,000, a coupon of 6 percent, semiannual payments of interest, and a five-year maturity. If the market interest rate for such a bond is 5 percent, how much is the bond worth? How much is it worth at a market rate of 8 percent?
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