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Flora Co.'s bonds, maturing in 14 years, pay 14 percent interest on a $1,000 face value. However, interest is paid semiannually. If your required rate
Flora Co.'s bonds, maturing in 14 years, pay 14 percent interest on a $1,000 face value. However, interest is paid semiannually. If your required rate of return is 6 percent, what is the value of the bond? How would your answer change if the interest were paid annually?
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