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You own a 20-year, $12,000 bond issued by the National Widget Company of America, and you'd like to sell it. It pays at a
You own a 20-year, $12,000 bond issued by the National Widget Company of America, and you'd like to sell it. It pays at a rate of 4% per year, and you bought it 12 years ago for $7,000. If you'd like to earn an ? annual yield of 9% on the bond, what price do you need to sell it for now?
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
