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To expand its business, a hotel chain would like to issue a bond with a par value of $1,000, coupon rate of 10 percent, and
To expand its business, a hotel chain would like to issue a bond with a par value of $1,000, coupon rate of 10 percent, and maturity of 10 years from now. What is the value of the bond if the required rate of retun is 8 percent?
Use excel formula
pv(required rate of return, numbers of years to maturity, -annual interest payment,-par value)
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