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Levels of required rate of return

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To expand its business, the Kingston Outlet Factory would like to issue a bond with a par value of $1,000, a coupon interest rate of 10%, and a maturity of 10 years from now. Calculate the market value of the bond at each of the following levels of required rate of return:

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a. Required rate of return of 6%.

b. Required rate of return of 4%.

Reference no: EM132505567

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