How much would you pay for the bonds today if your required

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Reference no: EM133378686

Question: You want to help the Vikings fund their new football stadium; the bonds are being issued today to raise the necessary funds for construction. Because the construction process is expected to be lengthy, the bonds will not make any payments until the end of the 5th year, when it will make its first semi-annual payment. It will make 29 more semi-annual payments thereafter. The bonds' coupon rate is 8%, and par value is $1,000. How much would you pay for the bonds today if your required rate of return is 10%?

Reference no: EM133378686

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