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A firm buys corporate bonds in the secondary market with 10 years to maturity. Total par value is $55 million. The coupon rate is 11
A firm buys corporate bonds in the secondary market with 10 years to maturity. Total par value is $55 million. The coupon rate is 11 percent, with annual interest payments. If the expected required rate of return in 5 years is 9 percent, what will the market value of the bonds be then? A) $59.278.616 B) $58,341,216 C) $56.000.000 D) $56,935,022
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