Question: Aniston Corp expects to issue $1000 face value bond that matures in 10 years. The annual coupon rate is 8.5% and interest payments are expected

Aniston Corp expects to issue $1000 face value bond that matures in 10 years. The annual coupon rate is 8.5% and interest payments are expected to be paid annually. Similar priced bonds are currently priced at 98.4% of face value. Given this information, what is the required return (or i/y) by bondholders? Remember to use the +/- key on your calculator for the PV otherwise your calculator will encounter an error and may not return a value.

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