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Current interest rate increased

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Suppose that five years ago Cisco Systems sold a bond issue to 15 years who had a face value of $ 1,000 and a coupon rate of 7%. Interest is paid semiannually. If the current interest rate increased to 10% at what price the bonds were sold today?

a. 813.07
b. 801.25
c. 815.40
d. 805.58

Reference no: EM131050289

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