3 Martin Shipping Lines issued bonds ten years ago at $1,000 per bond The bonds...
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3 Martin Shipping Lines issued bonds ten years ago at $1,000 per bond The bonds had a 30 year life when issued, with semiannual payments at the then annual rate of 9 percent. This return was in line with required returns by bondholders at that point, as described below 12.5 Doints Swipoed Neal rate of return Inflation preni Risk premium 2 Total return 9 ebook rences Assume that today the inflation premium is only 2 percent and is appropriately reflected in the required return for yield to maturity) of the bonds Compute the new price of the bond Use Appendix Band Appendix D (Round "PV Foctor" to 3 decimal places. Do not round Intermediate calculations. Round the final answer to 2 decimal places) New price of the bond
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