An investor owns a 5 year, $1,000 bond with a 5% coupon that pays interest once per year.
If the yield to maturity of similar bonds is currently 8%, what is the investor's bond worth today?Bonds and coupons help needed for Finance Homework. Best answer gets 10 points!?
P = 1000*.05*(1 -1/1.08^5)/.08 + 1000/1.08^5 = 880.22
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