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Jozzby Ltd has been offered a five-year, $1 000 par value bond which pays interest of $25 every three months. If the rate of return
Jozzby Ltd has been offered a five-year, $1 000 par value bond which pays interest of $25 every three months. If the rate of return on the bond is 12%, with quarterly compounding, how much should the company be willing to pay for this bond? How did you get to this answer?
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