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Business, 05.05.2020 08:49 rrr57

Dull Computer is planning on issuing new bonds with a par value of $1,000, maturing in 10 years and have been rated at AA. The current market rate for AA bonds maturing in 10 years is 8%. Dull Computer has decided to issue these new bonds with an 8% coupon interest rate. At what price should investors being willing to pay for these new Dull Computer bonds?

a. 958.25
b. 1,000.00
c. 1,079.85
d. 1,252.63
e. 1,398.75

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Dull Computer is planning on issuing new bonds with a par value of $1,000, maturing in 10 years and...
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