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A major retailer 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 retailer is reevaluating its bonds since it is planning to issue a new bond in the current market. The firm's outstanding bond issue has 10 years remaining until maturity. The bonds were issued with a 8 percent coupon rate (paid semiannually) and a par value of $1,000. What is the value of these securities if the required return is 6 percent?
- A. $699.00
- B. $802.50
- C. $1259.05
- D. $1147.20
- E. $1148.77
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