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Assume annual coupons are received at the end of each year and annual compounding for this problem. You are concerned about the value of a
Assume annual coupons are received at the end of each year and annual compounding for this problem. You are concerned about the value of a bond that you own. The bond was issued 5 years ago with a 10.50 percent coupon and was priced at a par value of $1,000. The bond matures 4 years from today. What is the bond's price today, assuming a current required rate of return of 7.00 percent? 1) Between $700 and $1,000 2) Between $1,001 and $1,100 3) Between $1,101 and $1,200 4) Greater than $1,200
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