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Dumbledore has decided to issue a 10-year, $3,500,000 bond with interest paid semiannually. The market rate (yield) for bonds of similar risk and maturity is
Dumbledore has decided to issue a 10-year, $3,500,000 bond with interest paid semiannually. The market rate (yield) for bonds of similar risk and maturity is 6%. Dumbledore is considering a stated (coupon) rate of 4%, 6%, or 8%. |
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