Problem 13-06 Your broker offers to sell for $1,171 a AAA-rated bond with a coupon...
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Finance
Problem 13-06
Your broker offers to sell for $1,171 a AAA-rated bond with a coupon rate of 5 percent and a maturity of ten years. Given that the interest rate on comparable debt is 3 percent, calculate the bond's price. Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.
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