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A five-year $10,000 bond was selling with a 10 percent discount on its purchase. The coupon rate stated the bond was 8% percent. Dividends are
A five-year $10,000 bond was selling with a 10 percent discount on its purchase. The coupon rate stated the bond was 8% percent. Dividends are paid quarterly. How much is each quarterly dividend? Draw the cash flow diagram Based on a MARR of 6% per year compounded quarterly, what is the net present value of the bond? a) b) c)
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