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To expand its business, the Kingston Outlet Factory would like to issue a bond with a par value of $2,000, a coupon interest rate of
To expand its business, the Kingston Outlet Factory would like to issue a bond with a par value of $2,000, a coupon interest rate of 6%, and a maturity of 10 years from now. Calculate the market value of the bond at each of the following levels of required rate of return: a. Required rate of return of 4%. b. Required rate of return of 10%.
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