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The Vinny Cartier Company issued bonds at $1000 per bond The bonds had a 25-year te whened with semana payments at the the annual of

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The Vinny Cartier Company issued bonds at $1000 per bond The bonds had a 25-year te whened with semana payments at the the annual of percent This return was in line with required returns by bondholders at that point as described below Real rate of return flation premium Total return 111 Assume that ten years later the inflation premium is 3 percent, the nsk premium has declined to 3 percent and both are appropriately reflected in the rumored to maturity of the bonds. The bonds have 15 years remaining until maturity Compute the new price of the bond. Use . Financial calculator to arrive at the answert. Do not round Intermediate calculations. Round the final en werdences New price of the bond

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