PRICE OF BONDS
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A firm plans to issue bonds with a par value of $1,000 and 20 years to maturity. The bonds have a 5.5% annual coupon. What is the maximum an informed investor would pay for these bonds if the investor's required rate of return of 5%?
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A firm plans to issue bonds with a par value of $1,000 and 20 years to maturity. The bonds have a 5.5% annual coupon. What is the maximum an informed investor would pay for these bonds if the investor's required rate of return of 5%?
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Bond Valuation - Premium, please see attachment.
Bond Valuation
A firm plans to issue bonds with a par value of $1,000 and 20 years to maturity. The bonds ...
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