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Finance

Bond valuation

New University plans to issue a $100,000 bond. The money is to buy computer projection units for classrooms. The bond matures in 10 years, and it makes semi-annual interest payments. The stated interest rate is 8 percent, but rates have risen to 10 percent in the market. How much will the university receive when it issues the bond?

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Basic Finance, Finance

Category:- Basic Finance
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