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A company issued a 15-year, $1,000 par value bond. The coupon rate on this bond is 9% annually, with interest being paid each 6 months.
A company issued a 15-year, $1,000 par value bond. The coupon rate on this bond is 9% annually, with interest being paid each 6 months. The investor who purchased the bond expects to earn a 12% nominal rate of return. The cash proceeds received by the company from the investor totaled A $793.43 B $619.43 $875.38 $950.75 (P/A,12%,15)=6.8109 (P/F,12%,15)=0.1827 (P/A,9%,15)=8.0607 (P/F,9%,15)=0.2745
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