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The Brown Company issued bonds several years ago with a 10% coupon rate and a...

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Finance

The Brown Company issued bonds several years ago with a 10% coupon rate and a $1,000 face value. If the bonds pay interest semi-annually, have 5 years to maturity, and James can earn an 8% rate of return on comparable investments, what is the value of the bonds to James?

a. $924.18

b. $1079.85

c. $922.78

d. $1081.11

e. None of these are correct

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