You are considering the purchase of CJ, Inc. bonds that mature in 13 years, and have a 4.75% coupon rate. Coupon payments are made semi-annually, and the bond has a face value of $1,000. If the appropriate required rate rate of return for this bond is 4.45%, what is the value of the bond?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 17P
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You are considering the purchase of CJ, Inc. bonds that mature in 13 years, and have a 4.75% coupon rate. Coupon payments are made semi-annually, and the bond has a face value of $1,000. If the appropriate required rate rate of return for this bond is 4.45%, what is the value of the bond?
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