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Calculate the value of a $1,000 bond which has 10 years until maturity and pays quarterly interest at an annual coupon rate of 12 percent.

Calculate the value of a $1,000 bond which has 10 years until maturity and pays quarterly interest at an annual coupon rate of 12 percent. The required return on

similarminusrisk

bonds is 20 percent.

A.

$656.82

B.

$845.66

C.

$835.45

D.

$2,201.08

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