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An issue of Australian treasury bonds with par of $1,000 matures in 15 years and pays 8% coupon interest annually. The market price of the
An issue of Australian treasury bonds with par of $1,000 matures in 15 years and pays 8% coupon interest annually. The market price of the bonds is $1,085 and your required rate of return is 10% p.a. Determine the value of the bond to you, given your required rate of return.
A. $103.00
B. $108.00
C. $847.88
D. $1,085.00
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