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One of IBM's bond issues has an annual coupon rate of 3.9%, a face value of $1000 and matures in 14 years. Part 1: What
One of IBM's bond issues has an annual coupon rate of 3.9%, a face value of $1000 and matures in 14 years. Part 1: What is the value (or price) of the bond if the required return is 5%? Part 2: what is the value of the bond if the required return is 6%? Part 3: what is the value of the bond if the required return is 7%?
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