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You are considering the purchase of CJ, Inc. bonds that mature in 25 years, and have a 8.875% coupon rate. Coupon payments ar
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Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

в с Face value of Bond Coupon rate Coupon frequency Years to maturity Required return Current value of bond $1,000.00 8.875%

Cell reference -

B 1000 0.08875 more Face value of Bond Coupon rate Coupon frequency Years to maturity Required return Current value of bond 2

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.

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