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B Corporation has $1000 par value bonds with 7 years left to maturity, a stated annual coupon rate of 4.5 percent (with annual interest payments).
B Corporation has $1000 par value bonds with 7 years left to maturity, a stated annual coupon rate of 4.5 percent (with annual interest payments). What are these bonds worth today if the required market rate of return is 6 percent? _________ What are these bonds worth today if the required market rate of return is 5 percent? __________ What are these bonds worth today if the required market rate of return is 3 percent? __________ What is the relationship between the coupon rate, changes in the market rate and the value of these bonds?
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