Bob has been offered a 20-year bond issued by a company at a price of $990. The

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Bob has been offered a 20-year bond issued by a company at a price of $990. The bond has a coupon rate of 9% and pays the coupon semiannually. Similar bonds in the market will yield 7.7% today. What is the value of the bond? Do not round intermediate computations. Round your final answer to the nearest dollar.

Posted Date: May 15, 2024 01:03 PM

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Bob has been offered a 20-year bond issued by a company at a price of $990. The

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To find the value of the bond we need to calculate the present value of the future cash flows using ... View the full answer

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