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April 24, 2014

Homework Help: finance

Posted by susan on Thursday, February 14, 2013 at 2:44pm.

Assume a $1,000 face value bond has a coupon rate of 8.5 percent, pays interest semi-annually, and has an eight-year life. If investors are willing to accept a 10.25 percent rate of return on bonds of similar quality, what is the present value or worth of this bond?

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