Decided to sell some new bonds

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Reference no: EM131027026

In 2007 Carnival Cruise Lines decided to sell some new bonds (something about fixing a big ship). They sold the bonds for $1,000 (face value) with a 20 year maturity and an 7% coupon. Eight years have passed. Interest rates on similar bonds have increased to 9%. If an owner attempts to sell her/his Carnival bond bought for $1,000 in 2007, what should they expect to receive for it in the secondary market?

Reference no: EM131027026

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