A firm has an issue of $1,000 par value bonds with a 10 percent stated...
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Finance
A firm has an issue of $1,000 par value bonds with a 10 percent stated interest rate outstanding. The issue pays interest annually and has 10 years remaining to its maturity date. If bonds of similar risk are currently earning 8 percent, the firm's bond will sell for ________ today.
a.
$805.20
b.
$1,268.40
c.
None of the above
d.
$1,134.20
e.
$1,000
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