A 15 year bond issued today by carris inc has a coupon rate, Ask an Expert

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A 15 year bond issued today by Carris, Inc. has a coupon rate of 7%, a required return of 5% and a face value of $1000. The bond will be sold 4 years from now when interest rates will be 8%.

Required:

Question: What is the ending value of the bond when it is sold (to the nearest dollar)?

A. $1027

B. $854

C. $1000

D. $929

Note: Explain all calculation and formulas.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147911

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