Planning to build new bottling plant

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Reference no: EM131070889

In 2014, Coca-Cola Enterprises was planning to build a new bottling plant in the United States, and it needed to borrow about a quarter of a billion dollars for 20 years. It did so by selling IOUs, each of which simply promised to pay the holder $1,000 at the end of 20 years. The market interest rate was 3%. How much would you have been prepared to pay for one of the company’s IOUs?

Reference no: EM131070889

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