Problem a 10 year bond issued today by carris inc has a, Ask an Expert

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Problem: A 10 year bond issued today by Carris, Inc. has a coupon rate of 10%, a required return of 6% and a face value of $1000. The bond will be sold 5 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. $1,080

B. $1,064

C. $1,000

D. $1,375

Note: Please provide step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147886

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