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5. Malibu industries bond has a 14 percent coupon rate. Interest is paid semi-annually. and the bond has 40 years to maturity. If the investors

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5. Malibu industries bond has a 14 percent coupon rate. Interest is paid semi-annually. and the bond has 40 years to maturity. If the investors require 12% yield, what is the bond's value? Is the bond selling at par, at discount or at premium? The par value is $1,000 (10 pts)

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