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Bond A has a face value of $50,000 and matures in 20 years. The bond makes no payments for the first six years, then pays
Bond A has a face value of $50,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $2,100 every six months over the subsequent eight years, and finally pays $2,400 every six months over the last six years. The required return on the bond is 10 percent compounded semiannually.What is the current price of Bond A?
25,201.82 | ||
50,000.00 | ||
7,102.28 | ||
1,217.51 |
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