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Business, 20.09.2020 15:01 24dewitt

The face value is $1,000. When the bond is first issued, the price (P) is set to be equal to the face value, i. e. $1,000. If banks are offering a 4% interest rate for deposits, and the bond issuer wants to offer a competitive interest rate by setting i = 0.04, what should be the value for C that is paid to bond holder annually?

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The face value is $1,000. When the bond is first issued, the price (P) is set to be equal to the fac...
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