Master Bond Valuation: Calculate Present Value of $1300 Discount Bond

Chapter 4, Problem 15

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QUESTION:

Calculate the present value of a $1,300 discount bond with seven years to maturity if the yield to maturity is 8%.

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QUESTION:

Calculate the present value of a $1,300 discount bond with seven years to maturity if the yield to maturity is 8%.

ANSWER:

Step 1 of 3

Given data:

The future value is obtained as a $1,300 discount bond with seven years to maturity if the yield to maturity is 8%.

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Master Bond Valuation: Calculate Present Value of $1300 Discount Bond
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Unlock the secrets of bond investments! Discover how to compute the current value of a discount bond with a face value of $1300, maturing in seven years at an 8% yield. Master the financial math behind it all.


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