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Fred is expecting to get $17 one year from today, $25 two years from today, and $34 three years from today. If 7.9% is the
Fred is expecting to get $17 one year from today, $25 two years from today, and $34 three years from today. If 7.9% is the interest rate, what should be the present value of all three of these combined?
Bristol Inc. issues 13-year bonds paying 8.9% annual coupons with a face (par) value of $1,000. What should they be priced at if investors demand a 6.9% return for such bonds?
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