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A major manufacturer is reevaluating its bonds since it is planning to issue a new bond in the current market. The firm's outstanding bond issue
A major manufacturer is reevaluating its bonds since it is planning to issue a new bond in the current market. The firm's outstanding bond issue has 8 years remaining till maturity. The bonds were issued with an 8 percent coupon rate (paid semiannually) and a par value of $1,000. What will be the value of these securities in one year if the required return declines to 7 percent?
- A. $1,000.00
- B. $1,059.71
- C. $1054.60
- D. $1,060.47
- E. $1,053.89
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