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Briar Corp Is Issuing a 10-Year Bond with a Coupon

Question 78

Multiple Choice

Briar Corp is issuing a 10-year bond with a coupon rate of 7 percent. The interest rate for similar bonds is currently 9 percent. Assuming annual payments, what is the present value of the bond? (Do not round intermediate computations. Round your final answer to the nearest dollar.)


A) $872
B) $1,066
C) $990
D) $945

Correct Answer:

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