If an investor requires a 10 percent return on a $1000 bond with a 7% coupon...
If an investor requires a 10 percent return on a $1000 bond with a 7% coupon rate, what will the investor be willing to pay for the bond today if it matures in 8 years and interest is paid semiannually? What if interest is compounded and paid annually?
$839.95; $837.43
$1,194.80; $837.33
$837.43; $839.95
$840.45; $1,194.80
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