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Two years ago, transatlantic airlines sold a $250 million bond issue to finance the purchase of new jet airliners. These bonds were issued in $1,000
Two years ago, transatlantic airlines sold a $250 million bond issue to finance the purchase of new jet airliners. These bonds were issued in $1,000 denominations with an original maturity of 12 years and a coupon rate of 12%. Determine the value today of one of those bonds to an investor who requires a 14% rate of return on those securities.
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