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You buy an 8% annual coupon bond from CARRIS Inc. that has a 25 year maturity

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You buy an 8% annual coupon bond from CARRIS Inc. that has a 25 year maturity and a required return of 12%. The par value is $1,000. You sell the bond five years later when the required return is 10%. What is the beginning price of the bond when it is issued (to the nearest dollar)?;1) $686;2) $1,364;3) $1,000;4) $872;Additional Requirements;Min Pages: 1;Level of Detail: Show all work

 

Paper#29920 | Written in 18-Jul-2015

Price : $27
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