Question: A bond maturing in 7 years pays 8% on a $1,000 face value. However interest is paid semi-annually. If your required rate of return is

A bond maturing in 7 years pays 8% on a $1,000 face value. However interest is paid semi-annually.

If your required rate of return is 10%, what is the value of the bond? What is the value if the interest rate were paid annually?

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