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To Expand Its Business, the Kingston Outlet Factory Would Like

Question 54

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To expand its business, the Kingston Outlet factory would like to issue a bond with par value of $1,000, coupon rate of 10 percent, and maturity of 10 years from now. What is the value of the bond if the required rate of return is 1) 8 percent, 2) 10 percent, and 3) 12 percent?

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Coupon payment = 1,000 × 0.10 = $100
1) ...

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