Nine years ago, CCT, Inc sold the following bond at a price of $925 Face value $1,000 bond Coupon rate 7 Life 20 years Required Determine the market rate (yield) at the issuance date What is the value of this bond today to an investor who requires a 7 rate of return

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Nine years ago, CCT, Inc. sold the following bond at a price of $925. Face value: $1,000 bond Coupon rate: 7% Life: 20 years Required:

Nine years ago, CCT, Inc. sold the following bond at a price of $925.

Face value: $1,000 bond

Coupon rate: 7%

Life: 20 years

Required:

Determine the market rate (yield) at the issuance date.

What is the value of this bond today to an investor who requires a 7% rate of return?

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