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Sheridan, Inc., has outstanding bonds that will mature in six years and pay an 8 percent...

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Finance

Sheridan, Inc., has outstanding bonds that will mature in sixyears and pay an 8 percent coupon semiannually. If you paid$1,093.30 today and your required rate of return was 5.5percent.

How much should you have paid for the bond?


Did you pay the right price for the bond?

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Transcribed Image Text

Sheridan, Inc., has outstanding bonds that will mature in sixyears and pay an 8 percent coupon semiannually. If you paid$1,093.30 today and your required rate of return was 5.5percent.How much should you have paid for the bond?Did you pay the right price for the bond?

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