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ABC company issued a bond paying coupon interest of $120 per year for 10 years maturity. The bond has a face value of $1000. If the yield for similar bond is 14% what is the bond value

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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ABC company issued a bond paying coupon interest of $120 per year for 10 years maturity. The bond has a face value of $1000. If the yield for similar bond is 14% what is the bond value?

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