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Brodyco needs to raise capital and goes to the bond market to do so. Each bond holder will pay $X now and then for the
Brodyco needs to raise capital and goes to the bond market to do so. Each bond holder will pay $X now and then for the next 10 years Brodyco will send each bondholder $50 at the end of each year. At the end of the 10th year Brodyco will pay each bondholder $1000. If Brodycos borrowing rate is 6%, how much will each bondholder be willing to pay now? (what is $X?)
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