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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.
Question: Solution: Determine the amount you would be wiling to pay for a $1,000 par value bond paying $80 interest each year (annual) andmaturing in 12 years, assuming you wanted to earn a 9%…
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