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Instructions: Show your calculations and formulas. Round to two decimal points. Be sure to respond to each section and subsections (a), and (b) below:

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Instructions: Show your calculations and formulas. Round to two decimal points. Be sure to respond to each section and subsections (a), and (b) below: (a) Your company plans to issue a $10 million bond in order to raise funds for new factory equipment. The bond matures in 20 years and requires semiannual interest payments. The stated interest rate is 9 percent, but rates have fallen to 7 percent in the market. How much will your company receive when it issues the bond? (b) if this was a zero coupon bond, which rate would not be relevant?

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