Calculate the value of the bonds

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Calculate the value of each of the bonds shown in the following table, all of which pay interest annually. Comment on which bond should investor buy and why.

Bond

Face value ($)

Coupon interest rate (%)

Years to maturity

Required return (%)

A

1,000

14

20

12

B

1,000

8

16

8

C

100

10

8

13

Reference no: EM133071477

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