Microhard has issued a bond with the following, Finance Basics

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Microhard has issued a bond with the following

Question: Microhard has issued a bond with the following characteristics: Principal: $1,000 Time to maturity: 20 years Coupon rate: 8 percent, compounded annually Annual coupon payments Calculate the price of this bond if the stated annual interest rate, compounded annually, is:

a. 8 percent

b. 10 percent

c. 6 percent

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