Bond to yield the rates of return

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What would you be willing to pay for a $1,000 bond paying $70 interest at the end of each year and maturing in 25 years if you wanted the bond to yield the following rates of return?

a. 5 percent

b. 7 percent

c. 12 percent

(Note: At maturity, the bond will be retired and the holder will receive $1,000 in cash.)

Reference no: EM132484226

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