(Bond valuation) A $1,000 face value bond has a remaining maturity of 10 years and a required return of 9%. The bond s coupon rate is 7.4%. What is the fair value of this bond?

(Bond valuation) A $1,000 face value bond has a remaining maturity of 10 years and a required return of 9%. The bond s coupon rate is 7.4%. What is the fair value of this bond?
BOND N(YEARS) Yield to Maturity Present Value Coupon Rate Face Value
1 8 10.2% 8.0% $1,000
2 7 8.0% 9.0% $1,000
3 15 9.5% 7.5% $1,000
4 20 $1,075.00 8.5% $1,000
5 7.0% $963.80 6.49% $1,000
6 13 7.8% $1,140.60 $1,000








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