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Marin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 6.00% on these bonds. What is the bond's price?

Marin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 6.00% on these bonds. What is the bond's price?

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 2EB: Waylan Sisters Inc. issued 3-year bonds with a par value of $100,000 and a 6% annual coupon when the...
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Marin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 6.00% on these bonds. What is the bond's price? Your answer should be between 1000.00 and 1120.00, rounded to 2 decimal places, with no special characters.
Transcribed Image Text:Marin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 6.00% on these bonds. What is the bond's price? Your answer should be between 1000.00 and 1120.00, rounded to 2 decimal places, with no special characters.
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