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Alec Smart purchased a 10 year bond with a 10% coupon at its issuance date. The par value of the bond at maturity is $5,000.
Alec Smart purchased a 10 year bond with a 10% coupon at its issuance date. The par value of the bond at maturity is $5,000. After two years he checked the secondary market for his bond and discovered the bond currently trading at 15%. What current value would Mr. Smart use to help hir determine if he wanted to sell the bond. O The coupon rate is unchanged so $5,000 The sum of remaining cash flows or $9,000 o $3,878 $6,447
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