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Homework answers / question archive / What is the market value of a bond that has a required rate of return of 10% p
What is the market value of a bond that has a required rate of return of 10% p.a. and pays $50 p.a. with only two years remaining to maturity, if the redemption value is $1000 and the initial market value of the bond was $850 when it was first issued eight years ago?
Question 5 options:
1) $571.80
2) $1421.80
3) $826.45
4) $913.22
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