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    Bond rates and maturity

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    Borden's 8 3/4% bond matures April 15, 2016 paid and compounded annually.

    Determine value of a $1000 bond as of April 14, 2004 to investor who holds bond until maturity
    required Rate of Return:

    a) 7%
    b) 9%
    c) 11%

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    Solution Preview

    a) The coupon rate is 8.75% annual. We have two type of cash flow. First the annual payments of 87.50 towards interest ...

    Solution Summary

    The solution discusses bond rates and maturity.