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An investor is interested in purchasing $50,000, five year, 8 percent interest rate bond to be issue today. The bond pays interest semiannually, and the
An investor is interested in purchasing $50,000, five year, 8 percent interest rate bond to be issue today. The bond pays interest semiannually, and the applicable current market interest rate is 6 percent. What discount rate would we love to use to determinate the present value of the semi-annual interest payments associated with this bond?
8%
4%
3%
6%
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