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A bond of $100,000 is issued. The bond's contractual rate is 5%, the interest is paid semi-annually. The maturity is in 5 years. The market's
A bond of $100,000 is issued. The bond's contractual rate is 5%, the interest is paid semi-annually. The maturity is in 5 years. The market's interest rate is 6%. Calculate the total amount bondholders are ready to pay for the bond at a discount.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
