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Assume that Snooze Inc. has an issue of 18-year $1,000 par value bonds that pay 7% interest, semi-annually. Further assume that today's required rate of

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Assume that Snooze Inc. has an issue of 18-year $1,000 par value bonds that pay 7% interest, semi-annually. Further assume that today's required rate of return (or current market interest rate) on these bonds is 5%. Show Less a. How much would these bonds sell for today? Show answer to 2-decimal places [XX.XX]. A Dell Computer bond with face value of $1,000 and a 7% coupon matures in 2026 and is currently selling at 109. Your discount rate is 8%. b. Should you invest in/buy the Dell bond? Explain and use your computations to support your answer. TTTT Paragraph - Arial y o === 3 (12pt) - TTS - T- - - ES

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