Xerox issued bonds that pay $ 67.50 in interest each year and will mature in 5 years.

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Xerox issued bonds that pay $ 67.50 in interest each year and will mature in 5 years. You are thinking about purchasing the bonds. You have decided that you would need to receive a 5 percent return on your investment. What is the value of the bond to you, first assuming that the interest is paid annually and then semiannually?
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Foundations of Finance The Logic and Practice of Financial Management

ISBN: 978-0132994873

8th edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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