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