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Calculations for Value of Required Return

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A bond issued by Cornwallis, Inc. 15 years ago has a coupon rate of 7% and a face value of $1,000. The bond will mature in 10 years. What is the value (to the nearest dollar) to an investor with a required return of 10%?

a. $816
b. $886
c. $772
d. $728

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This solution provides calculations for required return.

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