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a corp.has a bond issue outstanding with a annual coupon rate of 8 percent and 20 years remaining to matunity.The interest payment is paid sermiannually.The
a corp.has a bond issue outstanding with a annual coupon rate of 8 percent and
20 years remaining to matunity.The interest payment is paid sermiannually.The par
face)value of the bond is$1,000.Bond investors require an 11 percent annual rate
of return under present market conditions.That is,the yield to matunity is 11 percent
Determine the intrinsic value of the bond
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