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Assume a $1,000 face value bond has a coupon rate of 8.5 percent paid semiannually and has an eight-year life. If investors are willing to
Assume a $1,000 face value bond has a coupon rate of 8.5 percent paid semiannually and has an eight-year life. If investors are willing to accept a 10 percent rate of return on bonds of similar quality, what is the present value or worth of this bond? By how much would the value of the bond in Problem 4 change if investors wanted an 8-percent rate of return? Show your work including Variables and Formulas. Be as detailed as possible
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