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Mills Company, a large defense contractor, on January 1st, 2004, issued a 10% coupon interest rate , 10 year bond with a $1000par value that
Mills Company, a large defense contractor, on January 1st, 2004, issued a 10% coupon interest rate , 10 year bond with a $1000par value that pays interests semi-annually. Investors who buy this bond receive the contractual right to two cash flows: (1) $100 annual interest (2) $1000 par value at the end of the tenth year. Calculate the value of the bond.
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