Formula and financial calculator methods

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Katie Pairy Fruits Inc. has a $2,900, 21-year bond outstanding with a nominal yield of 18 percent (coupon equals 18% × $2,900 = $522 per year). Assume that the current market required interest rate on similar bonds is now only 12 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Reference no: EM131549817

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