You own a $1000 bond paying 8 percent annually until its maturity in 5 years. You need

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You own a $1000 bond paying 8 percent annually until its maturity in 5 years. You need to sell the bond now, even though the market rate of interest on similar bonds has increased to 10 percent.What discounted market price for the bond will allow the new buyer to earn a yield of 10 percent?

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Personal Finance

ISBN: 9781439039021

10th Edition

Authors: E Thomas Garman, Raymond E Forgue

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