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(2) 4. If one bond of a company entitles its holder (owner) to receive $40 from the company (share of its profit) in the end

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(2) 4. If one bond of a company entitles its holder (owner) to receive $40 from the company (share of its profit) in the end of each year over the next 12 years and the bond can be sold (redeemed) in the end of the 12th year for $500, calculate the present value of the bond (i.e., what is the fair price of the bond today) if the annual discount (interest) rate is 7%

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