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Please show your work Return on Bonds. Timothy has an opportunity to buy a $2,000 par value corporate bond with a coupon rate of 6%
Please show your work
Return on Bonds. Timothy has an opportunity to buy a $2,000 par value corporate bond with a coupon rate of 6% and a maturity of five years. The bond pays interest annually. If Timothy requires a return of 8%, what should he pay for the bond? If Timothy requires a return of 8%, the amount he should pay for the bond is $ . (Round to the nearest cent.)Step by Step Solution
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