SOLUTION: Zenix Industries issued fixed coupon bonds 5 years ago. When they were originally issued each bond had a 20 year maturity, a face value of $1,000, yield of 6%, made annual coupon p
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Question 586805: Zenix Industries issued fixed coupon bonds 5 years ago. When they were originally issued each bond had a 20 year maturity, a face value of $1,000, yield of 6%, made annual coupon payments and sold at par. The company would like to buy back the bonds now and therefore would like to calculate the current price of the bonds. Given that yields on similar bonds are currently 8%, what is the price of each bond now?
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