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Bond valuation-Annual interest--Calculate the value of the bond shown in the following table, assuming it pays interest annually. (Click on the icon located on the
Bond valuation-Annual interest--Calculate the value of the bond shown in the following table, assuming it pays interest annually.
(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)
Par value Coupon interest rate Years to maturity Required return $500 6% 16 11%
The value of the bond is $_________(Round to the nearest cent.)
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