Question: How is this calculated? Determine the amount you would be wiling to pay for a $1,000 par value bond paying $80 interest each year (annual)

How is this calculated?

Determine the amount you would be wiling to pay for a $1,000 par value bond paying $80 interest each year (annual) and maturing in 12 years, assuming you wanted to earn a 9% rate of return?

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