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34 You are considering buying bonds in ACBB, Inc. The bonds have a par value of $1,000 and mature in 15 years. The annual coupon
34
You are considering buying bonds in ACBB, Inc. The bonds have a par value of $1,000 and mature in 15 years. The annual coupon rate is 13.0% and the coupon payments are annual. If you believe that the appropriate discount rate for the bonds is 18.0%, what is the value of the bonds to you?
$864.56 |
$745.42 |
$1,323.12 |
$1,474.34 |
$810.95 |
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