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A firm is going to issue a 20 -year bond with semi-annual coupon payments. The face value is $1,000 and the coupon rate is 5%
A firm is going to issue a 20 -year bond with semi-annual coupon payments. The face value is $1,000 and the coupon rate is 5% per year. If the market requires an annual return of 6% on the bond, the bond price should be A) $884 B) $926 C) $1,105 D) $1,037
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