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6. Consider a bond issued for $ 1,000 in 2010 by a public company with a maturity date in 2020 at a coupon rate of
6. Consider a bond issued for $ 1,000 in 2010 by a public company with a maturity date in 2020 at a coupon rate of 4.5%. If in 2016, 4 years after maturity, the investors who own these bonds were requiring an 8% rate of return, determine the value of the bond for these investors at the time of claiming these values.
a. $ 1,125.56
b. $ 960.09
c. $ 884.08
d. $ 784.10
e. Cannot be calculated because information is missing
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