Calculating the value of a bond
What is the value of a bond that matures in 18 years, makes an annual coupon payment of $110, and has a par value of $1000? Assume a required rate of return of 7%, and round your answer to the nearest $10.Answer$1,610$1,400$1,290$1,000
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What is the value of a bond that matures in 18 years, makes an annual coupon payment of $110, and has a par value of $1000? Assume a required rate of return of 7%,
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