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Lightning Electrics outstanding bond has a $1,000 maturity value and a 4.5 percent coupon rate of interest (paid semiannually). The bond, which was issued five
Lightning Electrics outstanding bond has a $1,000 maturity value and a 4.5 percent coupon rate of interest (paid semiannually). The bond, which was issued five years ago, matures in 10 years. If investors require a return equal to 6 percent to invest in similar bonds, what is the current market value of Lightnings bond? Show work please.
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