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Alice Kitchens Inc. bonds have a 10% coupon rate with semiannual coupon payments. They have 12 and 1/2 years to maturity and a par value
Alice Kitchens Inc. bonds have a 10% coupon rate with semiannual coupon payments. They have 12 and 1/2 years to maturity and a par value of $1,000. Compute the value of Alices bonds if investors required rate of return is 8%.
Group of answer choices
$1,084.44
$1,239.33
$1,156.22
$1,137.10
Suppose a U.S. treasury bond will pay $1,050 five years from now. If the going interest rate on 5-year treasury bonds is 4.25%, how much is the bond worth today?
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