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A trader purchases bonds with a par value of $25 million for $24,040,000. The coupon rate is 10 percent, and the bonds pay annual payments.
A trader purchases bonds with a par value of $25 million for $24,040,000. The coupon rate is 10 percent, and the bonds pay annual payments. The bonds mature in four years. The trader wants to sell them in two years, and estimates the required rate of retum in two years will be 7 percent. What will the market value of the bonds be in two years? A) $25,000,000 B) $25,891632 C) $26,356,014 D) $27.891.632
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