Problem 7-19 A corporation issues a debt instrument such as a bond that promises to pay you annually $80 for four years and $1,000 after four years. What is the maximum amount you would pay for this debt instrument if you wanted to earn 8 percent? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.$
Problem 7-19 A corporation issues a debt instrument such as a bond that promises to pay you annually $80 for four years and $1,000 after four years. What is the maximum amount you would pay for this debt instrument if you wanted to earn 8 percent? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.$
Chapter3: The Financial Environment: Markets, Institutions And Investment Banking
Section: Chapter Questions
Problem 14PROB
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Problem 7-19
A corporation issues a debt instrument such as a bond that promises to pay you annually $80 for four years and $1,000 after four years. What is the maximum amount you would pay for this debt instrument if you wanted to earn 8 percent? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.
$
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