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A corporate bond has an annual coupon rate of 12%. Interest is paid semi-annually. The bonds have a par value of $1000 and will mature
A corporate bond has an annual coupon rate of 12%. Interest is paid semi-annually. The bonds have a par value of $1000 and will mature 8 years from now. Compute the value of the bond if investors required rate of return is 8%. (Round your answer to the nearest $1)
a. $1,115
b. $1,233
c. $890
d. $940
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