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Browser, Inc. bonds were recently upgraded to investment grade. Five years ago, Browser issued a twenty-year, $20 million coupon bond at par. The bond carried
Browser, Inc. bonds were recently upgraded to investment grade. Five years ago, Browser issued a twenty-year, $20 million coupon bond at par. The bond carried an initial coupon of 9%. As a bond portfolio manager, you are contemplating the purchase of this bond. If you plan to hold the bond to its maturity, how much should you pay for this bond today if the market interest rate is 10%.
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