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Tom Cruise Lines Incorporated issued bonds five years ago at $ 1 , 0 0 0 per bond. These bonds had a 2 5 -

Tom Cruise Lines Incorporated issued bonds five years ago at $1,000 per bond. These bonds had a 25-year life when issued and the annual interest payment was then 13 percent. This return was in line with the required returns by bondholders at that point as described below:
\table[[Real rate of return,5%
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