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Posted on Sep 29, 2024

Karen bought a AAA rated corporate bond in 2 0 1 6 for $ 1 , 0 0 0 that pays a $ 4 0

Karen bought a AAA rated corporate bond in

2016

for $

1, 000

that pays a $

40.00

annual coupon payment, which matures in

2036 .

Today

(2024)

the prevailing interest rate for AAA rated corporate bonds is

8.5 % .

What is the coupon payment and bond value of Karen

s AAA rated corporate bond in

2024 ?

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